Oil prices have fallen as forecasts for growing crude inventories toned down bullish sentiments about global economic recovery. Light sweet crude for April delivery traded at US$81.4 while Brent crude was at US$80 in Asia.
This week, as the markets grew increasingly bullish about the global economic recovery, oil prices spiked to an eight-week high above US$82. Markets were also buoyant after the French President indicated that Greece's euro-zone partners stood ready to provide help if needed to avoid a default. But the effect of these words began to fade as help seems dear for Greece as Spain, Portugal and Italy are waiting in the wings. Also lifting oil prices was ethnic violence near the city of Jos in Nigeria have stoked concerns about production. During the week, oil gained more than 2% last week, boosted by US. jobs data and positive comments from Chinese officials about economic growth.