Oil prices gain slightly after falling by $5

21-Jun-08

News that China plans to raise prices for gasoline by 16% and diesel fuel by 18%, in a move to ease global demand saw oil prices drop by almost five dollars. Crude oil futures dipped to US$131.93 a barrel on the New York Mercantile Exchange after China disclosed its plans. China raised prices to ensure supplies by reducing the gap between soaring international crude prices and state-set domestic oil prices Oil prices also dipped as Saudi Arabia announced plans to increase oil output by 200,000 bpd. The announcement followed Anglo-Dutch oil giant Shell reported shut down of a 200,000 bpd Nigerian offshore oilfield after an attack by militants.