US inventories down, but Saudi promises on reserves

Oil prices were down on Thursday despite an unexpected drop in U.S. inventories of both crude oil and gasoline.

This was the first drop in crude oil prices in three sessions.

The U.S. energy department reported on Wednesday that oil stockpiles had fallen by 1.8 million barrels, an unexpected fall after ten weeks of increasing supplies.

The fall was explained in part by a decrease in imports and an increase in refinery runs. However, fears that energy prices are hurting global economic growth and less than positive reports from some top companies have cause the trend in lowering crude oil prices.

Another influence in the falling prices was a statement from the oil minister of Saudi Arabia, who said Thursday that his country could meet oil demands for decades to come with its 261 billion barrels of proven reserves and another 100 billion barrels of what he called probably and possible reserves.

He predicted that these reserves could last for over 100 years.

By late morning in London, Nymex June deliveries had lost 53 cents, to fall to $53.50 per barrel. Brent June deliveries were down 39 cents to $53.59 per barrel.

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