Oil prices witnessed a rise in Asian trading, after dipping by more than two dollars in the previous session. This two dollar dip was caused on growing concerns of growing crude inventories in USA, despite a cooling of the economy and fuel demand. Light, sweet crude for March delivery rose to US$87.60 a barrel in Asian electronic trading on the New York Mercantile Exchange by midmorning in Singapore. The contract fell by US$2.22 on Wednesday.
This week's U.S. inventory report by the Energy Department's Energy Information Administration is expected to show a rise in US oil inventories last week by 1.8 mln barrels. The US Federal Reserve's decision to slash its benchmark fed funds rates by three-quarters of a percentage point to 3.5% has done little to limit declines in oil prices. The Fed is expected to cut rates further next week, but many investors remain worried about whether the cuts will stave off recession.
25-Jan-08 
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