Petrol fell below $ 53 with "supply" concerns Oil prices fell below $ 53 with a rise in US private-sector stocks. Oil prices have fallen below $ 53 a barrel after showing that the private sector in the US has increased its oil inventories and that the already high levels of total inventories have risen even more.
Forward Oil contracts grew 0.7 percent in New York, after dropping 0.1 percent on Tuesday. Oil inventories increased by 11.6 million barrels last week, according to the private sector funded American Petroleum Institute. It is expected that official Petroleum stock data to be announced on Wednesday will show that the increase is moving in the ninth week. Saudi Arabia's energy minister said that inventories are expected to slow down considerably and that the decision on the prolongation of OPEC's contract of production quota will be taken when the ministers meet in May.
Oil prices have surpassed more than $ 50 per barrel as the Petroleum Exporting Countries (OPEC) and other producer countries began reducing output from 1 Jct to offset the global supply surplus. Saudi Arabia and Russia, the architects of the agreement on supply, sought a united front on Tuesday to reconcile a conference in Houston with Iraqi and Mexican officials continuing their insistent stance that restrictions are underway.
Jonathan Barratt, chief investment officer at Ayers Alliance Securities in Sydney, said: "Oil is stuck in a comfortable band between $ 50 and $ 55," he said, adding that OPEC would probably not extend the duration of production shortages if prices do not fall below $ 50.
The April-term West Texas Oil (WTI) price dropped 52 cents to 52.80 dollars at 10:48 pm with Hong Kong time, down 39 cents from the Nymex to 52.75 dollars per barrel. Total transaction volume was 58 percent below the 100 day average. The contract fell by 6 cents on Tuesday and closed at 53.14.
May-term Brent Oil plunged 35 cents, or 0.6 per cent, in London-based ICE Futures Europe to 55.57 dollars per barrel. The prices fell by 9 cents on Tuesday to close at 55.92. The global benchmark Brent Oil was trading at a premium of $ 2.30 in relation to the May term WTI.
