Oil prices fall, reaches $70 a barrel
Crude oil futures fell after data showed a rise in US fuel stockpiles and OPEC appeared set to maintain its production targets.
By Agencies |
NEW YORK: Crude oil futures fell after data showed a rise in US fuel stockpiles and OPEC appeared set to maintain its production targets.
Futures also were impacted by falling commodity prices overall and a firmer dollar.
New York's main contract, light sweet crude for delivery in July, fell 95 cents to finish at $70.34 per barrel.
In London, Brent North Sea crude for July delivery dropped $1.02 to $69.39 per barrel in closing deals.
John Kilduff at Fimat USA said the market was pressured by "a sell off in global commodity markets, along with some renewed strength in the dollar."
The US Department of Energy said reserves of gasoline (petrol), which are in focus at the start of the summer driving season, rose by 800,000 barrels to 209.3 million in the week ending May 26. The figure was below the predicted increase of 1.4 million barrels.
But crude oil reserves increased 1.6 million barrels to 345.5 million in the week. Analysts had expected a gain of about one million barrels.
Kilduff said the report overall was "bearish" for the market since it showed higher reserves of crude oil.
He noted however, "The Iran worries are still in the market. People continue to be somewhat hopeful for a diplomatic solution."
Crude futures had fallen heavily on Wednesday after the United States offered to hold direct talks with Iran - for the first time since 1979 - over the Islamic republic's disputed nuclear programme.
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