US crude supplies report a fall- oil rises

07-Jun-12

A report showed a more than expected fall in US crude inventories by 1.8 mln, suggesting demand may be improving. This has propped up oil prices above US$85 a barrel in Asia. Oil on the Nymex rose to US$85.3 per barrel, late afternoon Singapore time, and in London, Brent crude for July delivery moved up by almost one dollar to US $99.8 on the ICE Futures exchange. From levels of US$106 in May, crude oil has collapsed amid signs of weakening economic growth and deteriorating oil demand in Europe, USA and China. Last week, a jobs report in USA was unsatisfactory, raising concerns that the world's biggest economy is faltering just as Europe's debt crisis threatens to send the continent into recession.