London, April 15: World oil prices fell on Wednesday on news that US crude reserves had hit the highest level since 1990, indicating fragile demand in the recession-blighted American economy.
In late afternoon trade, London`s Brent North Sea crude
for May delivery dropped 54 cents to 51.42 dollars per barrel.
New York`s main futures contract, light sweet crude for
delivery in May, sank 40 cents to 49.01.
The US government`s Department of Energy (DoE) said crude
stocks surged 5.6 million barrels in the week ending April 10
to 366.7 million barrels, the highest level since September
1990.
Analysts polled by Dow Jones Newswires had predicted a
smaller weekly gain of 2.1 million barrels. Crude inventories
are now 16.5 percent higher than at the same stage last year.
The DoE report is a key focus for the oil market because
the United States is the world`s biggest energy consuming
nation, followed by number two China.
The market was also dragged lower by official data
showing that US industrial production fell in March for the
fifth consecutive month, by 1.5 per cent, to the lowest level
in a decade amid a prolonged recession.
Bureau Report
