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Crude prices likely to decline this week as US inventories rise
Crude oil may fall because of rising US inventories and declining demand for fuel, a survey showed on Friday.
- Bloomberg
- Published: 00:32 February 16, 2008
New York: Crude oil may fall because of rising US inventories and declining demand for fuel, a survey showed on Friday.
Twenty of 36 analysts surveyed by Bloomberg News, or 56 per cent, said prices will decline through February 22. Nine of the respondents, or 25 per cent, said futures will be little changed and seven predicted an increase. A week ago, 78 per cent said oil would drop.
US crude-oil inventories rose 18.2 million barrels, or 6.4 per cent in the past five weeks, an Energy Department report showed on February 13.
Total implied fuel demand fell 1.8 per cent to 20.1 million barrels a day (bpd) last week, the report showed.
"While the crude-oil market has shown itself to be resilient, the weekly DOE inventory data continues to send consistent bearish messages with higher inventories and poor product demand," said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York.
Crude oil for March delivery rose $3.47, or 3.8 per cent, to $95.24 a barrel so far last week on the New York Mercantile Exchange. Thursday's $95.46 close was the highest since January 9. Futures have drop-ped five per cent since reaching a record $100.09 a barrel on January 3.
The oil survey has correctly predicted the direction of prices 52 per cent of the time since its introduction. Geopolitical concerns and supply worries along with consistent demand from emerging economies have fuelled oil's longest rally over the last four years.
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