Crude inventory improves oil stockpiles
Oil prices hit a six-week low Wednesday in anticipation of the release of US weekly crude oil inventory figures. The report is expected to say that there has been another rise in crude oil stockpiles.
In early trading in London, IPE Brent fell a further 42 cents to $51.56 per barrel for May delivery after a loss of $1.23 on Tuesday.
The price per barrel for Brent’s June contract fell to $52.52. Nymax WTI for May also saw a loss of 42 cents to $51.44 per barrel, adding to a loss of $1.85 on Tuesday.
Part of the recent drop in crude oil prices is due to the recent report from the International Energy Agency (IEA), which had global oil demand slowing down, and it revised its demand for 2005 prediction down by 50,000 barrels a day.
Among other things, the IEA reported that demand for crude oil in China looks to be slowing down. This opinion is not shared by OPEC; it says that China was a strong buyer of crude oil in March and had continued this trend in April.
The IEA’s predictions have not been especially accurate the past two years.