U.S. Oil Falls from Record High on Worries about Weak Demand
U.S. crude futures fell from a record high on worries about a weaker demand in the United States, the top consumer of oil in the world.
Steep declines in the dollar lifted prices of crude on the last weeks. Analysts said they expect this inverse relationship between dollar and oil, to last until there are significant signs that demand is weakening due to an economic slowdown, Reuters noted.
A report released this week showed that U.S. crude inventories rose more than forecasted by 6.18 million barrels to 311.6 million barrels on the week ended March 7 according to a report from the Government.
Crude oil futures for April delivery fell 0.33 cents or 0.30 percent to $110.00 a barrel on the New York Mercantile Exchange at 3:23. London Brent crude fell 0.24 cents or 0.23 percent to $107.46 a barrel on the ICE Futures Exchange.
Yesterday oil futures rose to a new record of $111, the highest since trading began in 1983. Specialists said today's losses on crude oil were also result of a profit-taking move from investors.
According to Reuters, crude oil prices jumped about 15 percent since the new year started.
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