Oil prices fall to near $71

21/09/2009

Oil prices in Asia fell to almost $71 a barrel as weak demand and large stockpiles of crude did little to help the idea that world economy is on the up again.

David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney said: "Most of the macro data from the US over the last month has been supportive of oil prices. But inventories remain high and demand is weak, so that's capping prices."

He added that crude is likely to average $64 a barrel throughout the fourth quarter and will rise to $80 a barrel in the period from October to December 2010.

On Wednesday the Energy Information Administration said that America is sitting on a sea of distillate fuels including heating oil and stockpiles are as high as they've been in 27 years.

Stockpiles are 14 per cent larger than last year with fuel consumption dropping lower.