Crude Oil Drops Despite Decline in U.S. Stocks
Eyebrows raised as crude prices drop despite the U.S. announcement yesterday of declines in crude oils and gasoline stocks. With the June’s contract starting, midday trading down 65 cents to $53.38 and Brent crude was down 50 cents in London trading.
With OPEC pumping near record highs of 30 million and most inventories strong, experts say the high prices won’t continue for the long term, “As long as you continue to put greater supply in the market,” Adnan Shihab-Eldin, acting secretary-general of the OPEC, said Wednesday.
And while the Saudi Oil Minister Ali Naimi said at an oil conference in Paris. “Despite our best efforts, Saudi Arabia and OPEC have had little ability to curb the rapid rise in prices, ” he “Nevertheless, in the short term we intend to continue doing our best to stabilize the market by increasing our exports according to the needs of our consumers.”
He went on to say Saudi would continue to increase production to bring prices under control although he didn’t say how much.
Interestingly enough, despite increase gasoline prices, consumption was up more than a full percentage point over last year.
Economic growth continues to boom in China, the second largest consumer of oil in the world. With higher than expected growth this term, China is expected to remain thirsty for black gold.
John Stith is a staff writer for WebProNews covering technology and business.