Oil Falls as Stocks Weather the Cold Snap

Published November 22nd, 2000 - 02:00 GMT

Oil prices trickled down below 33 dollars a barrel in London trading on Wednesday after new data overnight showed a rise in US crude stock levels, despite recent forecasts of cold weather in the northern hemisphere. 

Benchmark Brent crude for delivery in January fell to 32.80 dollars a barrel, from 33.10 dollars at the close on Tuesday. 

Closely watched data from the American Petroleum Institute (API) released overnight in the United States showed a larger-than-expected rise in US crude inventories last week. 

"Prices fell on the back of API figures that show a build in crude oil of 6.5 millions barrels," a London trader at the GNI brokerage told AFP. 

"It will need to be confirmed by (official US) department of energy figures" due to be published later on Wednesday, he said. "If it shows a build it will slip a bit more." 

The build in stocks showed that the release of oil from the US strategic Petroleum Reserve (SPI) was finally having an impact on US inventories, GNI said. 

The market would take the build in stocks last week, despite cold weather warnings in the United States, as "a sign that stocks are ample and that consumers have already restocked," it added -- LONDON (AFP)  

 

 

 

 

 

© 2000 Al Bawaba (www.albawaba.com)

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