Oil prices drop as US reveals drop in stockpiles

28th September 2011, Comments 0 comments

Oil prices slid on Wednesday after official data showed a bigger than expected increase in energy stockpiles in the United States, indicating weak demand in the world's biggest economy and oil consumer.

New York's main contract, West Texas Intermediate (WTI) for delivery in November, slid $1.90 to $82.55 a barrel.

Brent North Sea crude for November dropped $1.54 to $105.60 in late London deals.

Prices had surged by more than four dollars in New York on Tuesday, mirroring huge gains on world equity markets, as investors hoped that European governments would contain the eurozone debt crisis, in turn helping support demand for oil.

But they reversed direction on Wednesday as the US Department of Energy said crude oil stockpiles rose by 1.9 million barrels last week in the United States. Analysts polled by Dow Jones Newswires had forecast an increase of 700,000 barrels.

© 2011 AFP

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