Oil prices slip, reverse earlier gains

03-Jun-11

Amid volatile trading, crude oil prices slipped on Thursday, reversing earlier gains, due to an unexpected jump in crude oil inventories in the United States, as per Reuters. Remarks from some OPEC oil producers, including Saudi Arabia, that the group might increase the official output ceiling also weighed oil prices. US crude futures fell to US$98.8 while Brent crude fell to US$114.1. Crude oil inventories in USA jumped by 2.9 million barrels in the week to May 27, as per data from the Energy Information Administration (EIA). A report by American Petroleum Institute (API) showed a 3.5 mln barrel increase for the same week. The Organization of Petroleum Exporting Countries (OPEC) will meet next week to review its output policy. Oil minister of the most influential OPEC producer Saudi Arabia, said OPEC is ready to raise production to meet any increased demand.