Oil prices fell below $ 82 a barrel Wednesday in Asia fears of slower growth in China offset a report showing that U.S. crude supplies fell unexpectedly last week.
Benchmark oil for December delivery was down 83 cents to $ 81.51 per barrel late noon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $ 2.52, or 3 percent, to $ 82.34 on Tuesday to resolve.
Crude inventories fell 7.7 million barrels last week, the American Petroleum Institute said late Tuesday Suggs sting that demand for fuel rises. Analysts polled by Platts, the Energy Information arm of McGraw-Hill Cos., had expected an increase of 1.2 million barrels. The API said gasoline inventories also fell, while distillates rose.
The Energy Department’s Energy Information Administration reports its weekly supply data later Wednesday.
Last week crude inventory decline was the largest for that week since 1982, according to the Schork Report energy consultant, and follows a 7.4 million barrels last week to pull.
But fears that China’s measures to contain inflation, economic growth and oil demand to undermine his weigh on prices. China is the world’s largest energy consumer.
Speculation that the European Union can have a bailout of the debt finance of Ireland is also pain trader optimism.
“Concerns about European guilt and Chinese monetary policies that marred much of the beginning of the year again become influential,” Barclays Capital said in a report.
In other Nymex trading in December contracts, heating oil was down 3 cents at $ 2.28 per gallon and gasoline fell 4 cents to $ 2.16 per gallon. Natural gas fell 2 cents to $ 3.80 per 1,000 cubic meters.
In London, Brent crude lost 93 cents to $ 83.80 a barrel on the ICE Futures Exchange.
source:abcnews
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