Stock swollen, New York Oil Prices Down

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Stock swollen, New York Oil Prices Down

Saturday, 13 February 2010 09:27

New York - Oil prices in New York trading Friday falls on the local time after an unexpected increase in crude oil stocks in the United States, the largest energy consumer in the world, which showed sluggish demand for the country emerged from recession.
The main futures contract, New York, light sweet crude oil for March delivery, fell 1.15 dollars to 74.13 dollars per barrel.

Brent crude North Sea, London, for March delivery fell 1.22 dollars to 72.90 dollars per barrel.

Key U.S. inventory report for the week ending February 5 5 shows that crude oil stocks rose for the fourth consecutive week, with 2.4 million barrels. That compared with analysts' expectations for the 1.3 million barrel increase.

Gasoline stocks also rose much more than expected, according to a report that is usually published every Wednesday, but postponed due to snow storm in the northeastern United States.

Market "bearish" (wan) is also due to rising U.S. dollar against the euro, which is under pressure in the euro zone debt crisis centered around the twisting Greek debt.

European Union leaders Thursday to stop offering "bailout" (bailout) to save the euro zone member Greece. Deep problems in the Greek public finances have highlighted the danger of another debt countries hit by crises such as Italy and Spain.

A stronger dollar tends to reduce demand for oil due to crude oil priced in dollars more expensive for buyers using weaker currencies.

Hussein Allidina Morgan Stanley analysts said the weak market sentiment comes from the "fundamental bearish U.S. dollar coupled with a stronger Europe on fears."

"Crude oil, distillate and gasoline, the withdrawal of all listed stocks weaker than expected," he said.

Sentiment was also reduced by the credit tightening in China, which has been driving global economic growth and consumer energinomor two in the world.

China's central bank on Friday ordered financial institutions to increase their amount of reserve money, as authorities tried to rein in lending amid fears of rampant asset bubbles.

"What is important for investors from China's demand was echoed loudly in the decline of commodity prices, particularly oil, after the People` s Bank of China (China's central bank) announced that they will increase the reserve requirements for the second time this year, "said Mike Fitzpatrick, vice President MF Global.

"The conclusion is that this effort to cool the overheated economy that speak directly to China's energy demand growth, which has become a major contributor to rising crude oil prices for several years," he said. | antaranews.com | tenderoffer.biz |