Oil prices dip slightly

30 April 2008

The price of crude oil slid back on Wednesday following a gentle push upwards in the light of a strengthening dollar.

According to Reuters, traders waited for a decision on US interest rates and a strike in Nigeria by Exxon Mobil workers threatened supply.

In addition, the strike in Grangemouth, Scotland, linked to 40 per cent of the UK's supply, was also being keenly observed, Bloomberg reported.

US light crude for June delivery had already slipped by six cents in very early trading, standing at $115.57 (£58.78) a barrel by 6.15am; Monday had seen record prices of $119.93.

Brent crude for June rallied slightly at $113.46 a barrel in Singapore after suffering a 2.8 per cent fall on the London Future's Exchange on Tuesday, it biggest slide since the end of March, Bloomberg noted.

Lee Moon-bae, analyst at Korea Energy and Economy Institute, told Reuters: "The dollar's movement is now the biggest factor in moving oil prices rather than supply and demand."

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