Oil prices plunge on US supply glut
Saturday, 15 May 2010
LONDON, May 14 (AFP): Oil prices tumbled further Friday at the end of a volatile week during which the market was hit by high US crude stockpiles, stubborn eurozone economic concerns and a strong dollar, traders said.
New York's main contract, light sweet crude for June delivery, shed US$1.15 to $73.25 dollars a barrel.
Brent North Sea crude for June shed 2.36 cents to $77.75 a barrel in late afternoon London deals.
"Crude oil prices came under selling pressure this week, following record oil inventories at Cushing and amid general uncertain and fragile economic conditions in the eurozone," said Sucden analyst Myrto Sokou.
"It seems that global crude oil demand has not rebounded yet to the extent that global oil supply has, and this is possibly going to weigh on crude oil prices in the near term."
The US government's Department of Energy had revealed Wednesday that American crude stockpiles had risen by 1.90 million barrels last week, more than double the amount forecast by analysts.
And crude stockpiles at the key Cushing, Oklahoma terminal, jumped to a record 37 million barrels from 36.2 million the prior week.
"Large crude oil inventories seems to be weighing on markets," added MF Global analyst Edward Meir.
The oil market had begun the week on a bright note, soaring Monday after a one-trillion-dollar EU-IMF eurozone rescue plan eased market concerns over the eurozone financial crisis.
New York's main contract, light sweet crude for June delivery, shed US$1.15 to $73.25 dollars a barrel.
Brent North Sea crude for June shed 2.36 cents to $77.75 a barrel in late afternoon London deals.
"Crude oil prices came under selling pressure this week, following record oil inventories at Cushing and amid general uncertain and fragile economic conditions in the eurozone," said Sucden analyst Myrto Sokou.
"It seems that global crude oil demand has not rebounded yet to the extent that global oil supply has, and this is possibly going to weigh on crude oil prices in the near term."
The US government's Department of Energy had revealed Wednesday that American crude stockpiles had risen by 1.90 million barrels last week, more than double the amount forecast by analysts.
And crude stockpiles at the key Cushing, Oklahoma terminal, jumped to a record 37 million barrels from 36.2 million the prior week.
"Large crude oil inventories seems to be weighing on markets," added MF Global analyst Edward Meir.
The oil market had begun the week on a bright note, soaring Monday after a one-trillion-dollar EU-IMF eurozone rescue plan eased market concerns over the eurozone financial crisis.