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Crude oil was down in Asian trade today on concerns over weaker US energy demand indicated by rising inventories, analysts said.
New York’s main contract, light sweet crude for delivery in May dropped 26 cents to $94.38 a barrel and Brent North Sea crude for May delivery shed 17 cents to $105.62 in mid-morning trade.
“Prices are slipping back a little as dealers realise that crude oil inventories have risen to just about record levels,” David Lennox, resource analyst at Fat Prophets in Sydney, told AFP.
A US Energy Information Administration report released on Wednesday showed that US crude oil reserves grew by 250,000 barrels in the week ending April 5.
The build pushed US commercial stocks to 388.9 million barrels, not far from the all-time record of 391.9 million barrels in July 1990.
An increase in supplies mirrors weaker demand in the world’s biggest economy and largest oil consuming nation and leads to lower prices.
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