Oil falls on supply gain

24 June 2010

Posted by Neil Brunskill

Prices of crude oil have fallen below $76 per barrel on the key New York Mercantile Exchange, following news of growth in stockpiles, despite hope of a drop.

Distillates such as heating oil and gasoline also followed crude's lead and recorded lower prices on the market.

According to Bloomberg, heating oil futures had dropped by more than a cent to $2.0541 per gallon by 04:40 Eastern Time this morning (June 24th).

Crude prices, meanwhile, were hovering at $75.71 per barrel.

The price, around the week's low point, comes as the US stockpile figures strengthen doubts about the economic recovery.

Figures showing a drop in home sales in the US put more downward pressure on oil prices, as the results suggest demand for the commodity could be lower.

Brent crude prices for August delivery in London's ICE futures Europe exchange also dropped below $76 per barrel in early trading this morning, Bloomberg reports.