Oil price falls after report of more supplies

27-Aug-12

Oil prices ended last week on a weaker note. Oil on the NYmex fell 12 cents to US$96.15, while Brent crude traded dipped to US$113.3 News of release of oil from the Strategic Petroleum Reserve by the US Government has dampened the rise in oil prices, which are up more than US$8 per barrel this month. Releasing reserves will boost oil supply, which would drive prices lower. Also, it could lead to disruption in oil production and refining.