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Journalism of Courage
Oil prices fell further below $50 today as a fresh rise in US crude oil inventories outweighed the impact of President George W. Bush’s victory in the US election. US light crude by 1705 GMT was down 34 cents at $49.28, after peaking in Asian trading at $51.20, extending a week-long pullback from record highs to more than $6. Brent crude was down 43 cents at $46.12 a barrel. Prices tumbled after the US Government’s Energy Information Administration reported that crude oil stocks rose 6.3 million barrels to 289.7 million last week. Crude stocks have risen more than 10 million barrels in the last two weeks as they recover from the impact of Hurricane Ivan which tore into the oil-producing Gulf of Mexico in September. Global supplies have also been boosted by the highest production from the OPEC oil cartel in 25 years and by improved supplies from Iraq over the last two months. The crude build outweighed a 900,000 barrels fall in distillate stocks, including heating oil and diesel fuel, to 115.7 million, some 12 per cent below last year, the EIA said. US Distillate demand is running 8.1 per cent above lastyear as solid economic growth bolsters diesel consumption. ‘‘The market believes when refiners return from turnarounds, that they are going to push distillate output to a record, thus easing concerns of a supply shortage this winter,’’ said Ed Silliere, analyst, Energy Merchant Corp, New York. — Reuters
