Weakening demand and perceptions that a downward correction after a recent runup was overdue has caused oil prices to lose ground. Prices are expected to fall further to US$60 before stabilizing.
The dip could have been triggered off by reports from the International Energy Agency that high prices have pushed oil demand growth lower and concerns about inflation, raised by the U.S. Federal Reserve, suggesting interest rates might be pushed higher in order to slow growth
Light, sweet crude for June delivery on the New York Mercantile Exchange fell to US$69.24 a barrel in electronic trading by midday in Europe. On London's ICE Futures exchange, the front-month Brent crude contract for June, dropped to US$69.55 a barrel.
17-May-06 
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