Friday, March 14, 2008

Oil Drops From Record in New York on Concern Demand May Decline

Crude oil dropped from a record in New York on concern that the rally in energy prices may reduce demand at a time of increasing supplies.

Oil futures climbed to a record $111 a barrel yesterday after the dollar fell below 100 yen for the first time since 1995 and dropped to an all-time low against the euro. U.S. crude stockpiles last week rose more than analysts forecast, while gasoline supplies jumped to the highest since 1993.
Crude oil for April delivery fell as much as 60 cents, or 0.5 percent, to $109.73 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $109.75 at 10:04 a.m. Singapore time. Futures yesterday settled at a record $110.33 after reaching $111, the highest since trading began in 1983.

Brent crude for April settlement fell as much as 90 cents, or 0.8 percent, to $106.64 a barrel on London's ICE Futures Europe exchange at 9:38 a.m. Singapore time. The contract yesterday closed at an all-time high of $107.54 a barrel after reaching an intraday record of $107.88.

The April contract expires today. The more active May futures were down 48 cents at $105.97 a barrel at 9:38 a.m. Singapore time.

Stockpiles of crude and oil products in the developed economies of the Organization of Economic Cooperation and Development, or OECD, rose by 32.6 million barrels in January, reaching 2.62 billion barrels, the International Energy Agency said on March 11.

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