Oil prices fell in volatile Asian trade Thursday after rising overnight in New York following a US government report that showed American crude reserves dipped for the fourth week in a row.
New York's main oil futures contract, light sweet crude for July delivery, was 98 cents lower at $135.40 a barrel after trading as high as 136.99 in the morning.
Earlier, the contract jumped $5.07 to close at $136.38 on the New York Mercantile Exchange on Wednesday. New York's benchmark contract surged to an all-time high of $139.12 last Friday, when it rose a record-breaking $10.75 in one day's trade.
Meanwhile Brent North Sea crude for July delivery fell 95 cents to 134.07 a barrel after rallying $4.00 to settle at $135.02 on Wednesday in London. The contract hit a historic peak of $138.12 last Friday.
The latest price rises came after the US government said American crude stockpiles dived 4.6 million barrels in the week ending June 6.That was far heavier than market expectations for a drop of 1.5 million barrels and marked the fourth straight weekly fall.
Members of the Organisation of the Petroleum Exporting Countries (OPEC) collectively produce about 40 percent of the world's crude. They maintain the oil market is well supplied and current prices do not reflect the fundamentals of supply and demand.
The record-high prices have stoked fears for the global economy and led to sometimes violent protests by truckers in Europe, and unrest in India as well.
Thursday, June 12, 2008
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