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Crude continues declining on rising U.S. stockpiles

Published 05/09/2012, 08:24 PM
Updated 05/09/2012, 08:26 PM
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Investing.com - Crude oil futures fell in Asian trading on Thursday after data hit the wire revealing U.S. stockpiles are on the rise, while ongoing concerns that the European economy will succumb to the debt crisis further pressured crude lower.
 
On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD 96.47 a barrel, down 0.36%, off from a session high of 96.56 and up from an earlier session low of USD96.35.

The U.S. Energy Information Administration, the analysis unit of the Department of  Energy, revealed in its weekly report that U.S. crude oil inventories rose by 3.65 million barrels in the week ended May 4, above expectations for a 1.97 million barrel increase.

U.S. crude supplies increased by 2.84 million barrels in the preceding week.

Meanwhile in Greece, the leftist Syriza party is trying to form a government in wake of last weekend's parliamentary elections, and concerns are growing the country won't have a government in place by June, when Athens is due to receive a bailout tranche.

Syriza opposes austerity measures tied to receiving rescue funding, and worries are growing the country won't live up to belt-tightening agreements and forgo tapping bailout funds, which would increase the chances of default and abandoning the euro.

Talk that Spain will demand its banks set aside EUR35 billion to cushion the financial sector fanned fears Madrid will need a bailout, which also pressured oil down.

Uncertain economies need less oil to grow.

Oil did see some support on talk of supply snags in North Sea oilfields as well as at U.S. refineries.

On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.10% and trading at USD112.75 a barrel, up USD16.28 from its U.S. counterpart.






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