Brent prices close to $75 mark again

29/10/2009

London Brent crude oil prices were $75.57 per barrel, a fall of 29 cents, on London's ICE Futures exchange this Thursday (October 28th).

Prices had fallen 2.6 per cent - by $2.06 - yesterday to end the session at $75.86 per barrel, reports the Associated Press.

Yesterday the US Energy Department report showed that stockpiles of distillate fuel, a category that includes heating oil and diesel, were at 167.8 million, a decline of 2.13 million barrels.

The department reported that inventories were 29 per cent higher than the five-year average for the week.

Victor Shum, a Singapore-based senior principal at energy consultant Purvin & Gertz, said that in the past the market was able to put aside bearish inventory reports.

He added: "This time the market didn't ignore it, the market reacted to it because the other economic signals were also bearish; equities pulled back and the dollar gained strength."

A Dow Jones Newswires poll earlier this week anticipated distillate stockpiles to decline by 1.1 million barrels.