Lackluster US demand pulls down crude oil to around US$75

14-May-10

Benchmark crude for June delivery dipped to US$75.4 on the Nymex on signs of unenthusiastic crude demand from USA amid growing consumption in developing economies of China and India that is expected to bolster oil prices. The Energy Information Administration has reported that oil supplies in USA increased more than expected as stockpiles grow for 14 out of the last 15 weeks. Rising levels of crude inventories challenges analyst predictions that a recovering US economy would boost demand. International Energy Agency has forecast that in 2010, global oil demand is to rise 220,000 bpd less than it previously forecast. In London, Brent crude settled at US$81.4 on the ICE futures exchange.