Oil prices fall as US crude stockpiles rise

15-Mar-12

Oil prices dipped to their lowest in more than a week in New York on news of a rise in US crude stockpiles and of Saudi Arabia’s pledge to make up for any shortage in shipments from Iran and help offset the effect of economic sanctions on Iran. US crude supplies saw a rise of 1.8 mln barrels last week to the highest level in six months. Crude on the Nymex for April delivery dipped to US$105 levels, while Brent settled at US$124.9 on the ICE Futures Europe exchange. Oil exports from Iran are estimated to crash by almost 50% when EI sanctions take full effect in July, and shipments will fall by at least 800,000 bpd.