US oil prices decline on expectations of rising supplies
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E-mail Xinhua, May 8, 2013
U.S. oil prices fell Tuesday as the Department of Energy will release its weekly data Wednesday that may show the stockpiles of the world's largest economy will continue to rise.
Oil prices slid as traders expected that crude inventories could climb by 2 million barrels last week ahead of the Energy Information Administration report scheduled to be released Wednesday. The Energy Information Administration (EIA) is a subsidiary of the U.S. Department of Energy.
The U.S. crude inventories increased by 6.7 million barrels to 395.3 million barrels in the week ending April 26, according to EIA. It's the highest level since 1931, signaling higher production and weaker demand.
EIA also released its short-term energy outlook Tuesday and expected the world's oil production to exceed consumption in the second quarter of the year, resulting in a buildup of an average of 0.5 million barrels per day in global oil stocks.
The Reserve Bank of Australia on Tuesday lowered its benchmark interest rate to 2.75 percent from 3 percent, following the easing policies of other global major central banks. Last week, the European Central Bank slashed its benchmark refinancing rate by 25 basis points to a record low of 0.5 percent. Meanwhile, the U.S. Federal Reserve decided to keep its stimulus policy in place after its policy meeting Wednesday.
Traders were also watching the progress in the Middle East after Syria warned it would respond to Israeli air strikes Sunday.
Light, sweet crude for June delivery lost 54 cents, or 0.56 percent, to settle at 95.62 dollars a barrel on the New York Mercantile Exchange.
Brent for June delivery fell 1.06 dollars, or 1.0 percent, to close at 104.4 dollars a barrel.
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