Oil prices fall by over US$1

25-Jan-06

Oil prices fell by over a dollar on Tuesday on anticipation of an increase in already robust U.S. crude stockpiles. U.S. light crude dipped to US$67.06 a barrel on the New York Mercantile Exchange. In London, Brent crude dropped to US$65.34 on the International Petroleum Exchange. A report from the U.S. Energy Information Administration is estimated to show a build in crude supplies of more than 1 million barrels, adding to a surplus of more than 12% over last year. This increase in stockpiles coincides with refining companies shutting processing units for seasonal maintenance work, and as imports from overseas rises. This increase counters concerns of fresh violence in Nigeria, the world's eighth largest oil exporter. OPEC power Saudi Arabia has eased fears of global supply disruptions, offering to pump more oil if necessary. OPEC is likely to keep output steady when it meets on Jan. 31 in Vienna. European gas importers have been scuttling to find alternative ways of powering industry as cuts in Russian supplies dragged into a second week due to freezing weather.