Oil falls recorded

17/04/2009

Even though there have been gains in the crude and heating oil prices over the course of the week, oil could be heading for its biggest weekly fall since February, reports suggest.

According to Bloomberg News, growing stockpiles in the US and continually weakening demand levels are affecting market prices.

The main contract on the New York Mercantile Exchange stood at $49.85 at lunch time today (April 17th).

North Sea Brent for June delivery also fell in London trading, Agence France Presse reports.

Analysts surveyed by Bloomberg News have predicted that oil will trade in the region of $48 to $52 over the coming week.

The fall in prices comes following news of the highest inventory levels in the US since September 1990. Stockpiles in the country now stretch to 366.7 million barrels of oil.

Recent trading has been affected by too much optimism on the trading floor, Sintje Diek, an analyst for HSH Nordbank in Hamburg told Bloomberg, adding that actual demand levels remain weak.