Lukewarm retail sales numbers in USA pull down oil prices

15-Jun-12

Oil on the Nymex fell to US82.6 on Wednesday on release of government reports showing slower retail sales and a drop in spending on gas. Brent crude dipped to US$97.1. The Commerce Department reported retail spending slipped 0.2% in May, following an identical decline in April. Slow sales at gasoline stations helped push overall spending down. But even when the effect of volatile gasoline spending was excluded, retail spending rose just 0.1%, a disappointment to economists. A report by the Energy Department indicated that crude supplies fell by 200,000 barrels last week, though they remain relatively high for this time of year. Gasoline supplies shrank by 1.7 mln barrels, however, leaving stocks slightly below average. Organization of Petroleum Exporting Countries (OPEC) is scheduled to meet in Vienna on the 15th. OPEC could decide to restrict production in an effort to reverse a decline in the price of crude.