Weakening demand and rising inflation have triggered a 3% drop in oil prices, as prices dropped below US$70. Light, sweet crude for June delivery fell to US$69.41 a barrel on the New York Mercantile Exchange. June Brent crude futures on London's ICE Futures exchange fell to US$70.35 a barrel.
This seems to be the much needed correction required, and does not seem to represent any big change in the world economy. Last week, the International Energy Agency reported that high prices and mild temperatures have curbed U.S. oil demand in the first quarter. Strong exports from former Soviet countries have led the agency to conclude on a weakening demand. The Federal Reserve raised concerns about inflation, suggesting interest rates might be pushed higher in order to slow growth.
16-May-06 
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