Oil Prices likely to fall

08-Feb-06

The US Government is expected to report, Wednesday, an increase in US oil inventories along with lowered global oil demand estimates. US weekly inventory data is likely to show petrol supplies rising by 1.6 million barrels and crude oil supplies by 860,000 barrels. The revision of global demand, in the first quarter, expected to be lower than predicted a month ago by 300,000 barrels a day. Some easing of the tension in the Iran situation has also helped to take some of the worries out of the market. All this has led to lowering the price of oil on the international market by as much as US$2. March Light, sweet crude, fell by $US2.02 to $US63.09 a barrel on the New York Mercantile Exchange. March Brent crude fell by $US1.77 to $61.56 a barrel on London's ICE Futures exchange.