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Oil prices tumble on rising stocks
London, Sept 05: Oil prices fell sharply again on world markets today in response to a US government report showing a rise in oil stock levels that helped to ease worries about tight supplies.
London, Sept 05: Oil prices fell sharply again on world markets today in response to a US government report showing a rise in oil stock levels that helped to ease worries about tight supplies.
The price of reference Brent North Sea crude oil for October delivery lost 71 cents to 27.03 dollars per barrel, nursing a loss of about eight percent over just three days.
New York's benchmark light sweet crude October contract fell 84 cents to $ 28.65 per barrel in early deals.
"I think what we are seeing now is just an immediate reaction to the stocks" report, said Commerzbank analyst David Thomas.
"The figures have also acted as a trigger for speculators who are looking to liquidate their long position." US crude oil stocks rose by a bigger-than-expected 1.8 million barrels to 280.4 million in the week to August 29, the US Department of energy said.
Gasoline inventories showed a surprise increase of 700,000 barrels to 191.9 million in the week, while distillate fuel stocks rose by 2.9 million barrels to 124.7 million.
Speculative funds have been piling out of oil in recent days amid expectations of a weakening of demand for gasoline now that the so-called us "summer driving season" has ended.
The downward pressure offset any support from comments by Saudi Arabian oil minister minister Ali al-Nuaimi, who signalled late Wednesday that the OPEC kingpin was happy with the current market situation, three weeks ahead of a meeting of the cartel.
"The optimum corridor for oil prices is $ 20-$ 28 per barrel," Saudi oil minister Ali al-Nuaimi told reporters in Moscow after meeting his russian counterpart.
"We keep to the price of 22-28 dollars for our oil, while Russia keeps to 20-25 dollars per barrel, which is practically the same," he said.
The current state of the oil market was indicative of the two countries' success at keeping it stable, he added.
Bureau Report
New York's benchmark light sweet crude October contract fell 84 cents to $ 28.65 per barrel in early deals.
"I think what we are seeing now is just an immediate reaction to the stocks" report, said Commerzbank analyst David Thomas.
"The figures have also acted as a trigger for speculators who are looking to liquidate their long position." US crude oil stocks rose by a bigger-than-expected 1.8 million barrels to 280.4 million in the week to August 29, the US Department of energy said.
Gasoline inventories showed a surprise increase of 700,000 barrels to 191.9 million in the week, while distillate fuel stocks rose by 2.9 million barrels to 124.7 million.
Speculative funds have been piling out of oil in recent days amid expectations of a weakening of demand for gasoline now that the so-called us "summer driving season" has ended.
The downward pressure offset any support from comments by Saudi Arabian oil minister minister Ali al-Nuaimi, who signalled late Wednesday that the OPEC kingpin was happy with the current market situation, three weeks ahead of a meeting of the cartel.
"The optimum corridor for oil prices is $ 20-$ 28 per barrel," Saudi oil minister Ali al-Nuaimi told reporters in Moscow after meeting his russian counterpart.
"We keep to the price of 22-28 dollars for our oil, while Russia keeps to 20-25 dollars per barrel, which is practically the same," he said.
The current state of the oil market was indicative of the two countries' success at keeping it stable, he added.
Bureau Report