Crude prices slide as US inventories rise

<a href=news.ft.com>Financial times By Nerma Jelacic in London Published: April 3 2003 11:21 | Last Updated: April 3 2003 11:21

Brent crude prices continued their downward correction on Thursday after some surprisingly strong oil stocks data from the US and as coalition forces registered further victories in Iraq.

By 0945 GMT, IPE Brent for May delivery was 23 cents lower at $24.98 per barrel, exending the previous session's fall of more than a dollar per barrel.

The sharp revision in the commodity started on Wednesday as fears of supply disruption receeded after US-led forces moved closer to Baghdad.

The advance continued on Thursday with US forces reported to be within six miles of the outskirts of the capital.

Iraq moved Republican Guard units, President Saddam Hussein's best-equipped and most loyal fighters, to the south of Baghdad to face the thousands of US troops approaching the city.

The fall in crude prices was intensified by the release of the latest stockpile figures from the US on Wednesday.

US crude oil inventories rose by a larger-than-expected 2.5 per cent to 10.36m barrels per day of oil last week as a surge in supply from Saudi Arabia and Venezuela pushed imports to their highest level on record, the Energy Information Administration said.

Gold prices fell to a two-week low on news of US advance in Iraq. Bullion was trading at $325 an ounce down from the previous session's fix of $328.90 an ounce.

Investors pulled out of the traditional safe haven over the past two days returning to the dollar and equities instead. The yellow metal has lost some $11 an ounce since the start of this week.