US energy reports affect oil prices

24 April 2008

Some confusion over the amount of energy the US has stockpiled caused global oil prices to falter short of 60 pounds a barrel, according to reports.

Light sweet crude for June delivery slipped a little in New York's Asian trading, while the May contract just tipped the $119.90 (£60) mark.

The US government's Energy Information Administration (EIA) announced on Wednesday that American petrol reserves fell by 3.2 million barrels in the week ending April 18th, more than analysts had forecast.

David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney, told Thompson Financial that the EIA report had given "mixed messages" and there were also worries over supply.

The weak dollar and the refusal of the Organisation of the Petroleum Exporting Countries to increase output have contributed to the rising price of crude, according to the news provider.

Reuters suggested additional factors such as the struggling US economy and rising unemployment are also affecting prices.

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