Oil prices fall as supplies grow in USA

08-Dec-11

Oil prices dropped after the US Energy Information Administration reported that oil supplies increased last week by 1.3 mln barrels, and petrol supplies grew more than expected by 5.1 mln barrels for the week ended December 2. Supplies are growing because of weak demand for oil-based fuels in the US. Crude on the Nymex fell by over a dollar to US$100, while Brent crude fell to US$109.2 in London. In other developments Venezuelan President called oil prices fair and said his government would push to keep them at current levels, a week ahead of an OPEC meeting. Venezuela produces an average of 3 mln bpd and claims to have dethroned Saudi Arabia to become the nation with the largest proven crude oil reserves in the world, at nearly 300 billion barrels.