Crude oil declines

Posted By: Religare
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Crude oil declines
On Tuesday, in New York oil prices saw a dip for the third successive day. The drop was attributed to lower demand expectations. Demand in the US relies on crude oil stockpiles to a high extent. Hence as the crude inventories showed an increase, demand went down, in turn leading to a price decrease. Other factors like sluggish job growth rate also affected the price to an extent.

The Energy department in US reported that for last week, crude stockpiles rose 3.2 million barrels. In addition news came in that China will be tightening its fiscal policy to curb inflation. The news affected global oil prices as the policy is expected to lead to a decline in output levels, which in turn would lead to a lesser demand for crude.

The value of crude for June delivery was reported at $110.23 per barrel, down by

82 cents on the New York mercantile exchange. While on the ICE futures exchange in London, Brent crude for May contract was down to $122.10 a barrel. (11:29 P.M IST)

Read more about: crude, oil and gas
Story first published: Thursday, May 5, 2011, 9:30 [IST]
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