Oil prices fall despite stockpile decreases

04/11/2009

Oil prices fell to close to $79 per barrel this Wednesday (November 4th), despite unexpected news of a fall in US crude stockpiles suggesting that demand is on the increase.

Benchmark US crude oil for December delivery was trading at $79.54 per barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange, a fall of 6 cents, reported the Associated Press.

A survey by Platts, the energy information arm of McGraw-Hill Cos, has expected inventories to rise by 1.3 million barrels. However, the American Petroleum Institute reported that US inventories dropped last week by 3.3 million barrels.

Market experts anticipate that a further fall in price could be seen in the near future.

A report by Galena, Illinois-based Ritterbusch and Associates, said: "We still feel that a decline toward the $75 area could be forthcoming as this week proceeds."

Victor Shum, a senior principal at consultants Purvin & Gertz in Singapore, suggested earlier this week that the market was sentiment driven at present.