Oil prices continue to decline as US reserves recover

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Thursday, April 03, 2003 By: VenAmCham

Oil prices have plunged 10% as US reserves show a surprisingly robust recovery following record declines and as US-UK allied forces advance toward Baghdad.

Crude oil inventories in the United States rose 6.8 million barrels last week, greatly exceeding the expected 2.75 million barrel recovery. The price of US light crude had recently fallen 81 cents to 27.75 dollars per barrel losing 3.30 dollars per barrel so far in April, while fears of a prolonged interruption of global supply have lessened.

US gasoline reserves increased 1.7 million barrels instead of an expected 700,000 barrels leaving tanks less full than in previous years, although there are more than 50 million barrels of crude oil and 13 million barrels of gasoline on hand.