Oil prices fall in Asian trading as US crude inventories rise by the most in over 4 years

19-Jan-07

Oil prices fell in Asian trading on reports that U.S. crude inventories rose by the most in over four years - rising by 6.8 million barrels to 321.5 million barrels in the week ended Jan. 12. This is the biggest barrel-by-barrel gain since October 2002. Light, sweet crude for February delivery dropped to US$50.26 a barrel in electronic trading on the New York Mercantile Exchange midmorning in Singapore. Crude futures have been slipping for eight of the first 12 trading sessions of 2007, on persistent mild winter temperatures in the U.S. Northeast as well as rising energy stockpiles. Skepticism shrouds the market about OPEC's decision to deliver 1.2 million barrels of production cuts that were supposed to have started in November.