Despite unexpected drop in crude supplies, oil prices dip

09-Oct-09

As the markets chose to focus on government data indicating bearish oil consumption, oil prices dipped to US$69.5 despite an unexpected drop in crude supplies. Prices fell on release of data by the Energy Information Administration that the nation's oil supply dropped by 1 mln barrels last week. The drop was unexpected because stockpiles were estimated to grow by 1.9 mln barrels. Crude demand in USA continues to be unimpressive, and USA still has more oil in storage than last year.