Oil Prices touch 6 week low on Wednesday

13-Apr-05

Oil prices have falled sharply on Wednesday on expectation of rise in US crude inventories, expected increase in OPEC production and a fall in demand for oil by China New York's light sweet crude contracts for delivery in May, dropped 45 cents a barrel. Prices have falled over 12% in eight trading days to hit a six-week low of $51.41 a barrel. On April 4 price was at a record high of $58.28 a barrel. Likewise Brent North Sea crude oil for delivery in May lost 64 cents. This is a fall of 11% from peak value of $57.65 on April 4. North Sea Crude traded at $51.34 a barrel today. Later in the day official US data on crude inventories will be out. An increase in inventory is expected. Analysts say that OPEC is likely to boost oil supplies by 500,000 barrels per day in May. The International Energy Agency (IEA) yesterday revised downwards the estimate for world oil demand by 50,000 barrels per day for this year. Oil Growth in China has slowed down to under 6% from 20% growth seen during 2004