Home / Metal News / Tin / Oil Falls on Higher U.S. Inventories, More Saudi Output
Oil Falls on Higher U.S. Inventories, More Saudi Output
Dec 8,2011 10:01CST
data analysis
Source:SMM
Crude prices fell on Wednesday after choppy trading as U.S. inventories increased last week and the Saudi Arabia intended to raise output to meet rising demand.

NEW YORK, Dec. 7 (Xinhua) -- Crude prices fell on Wednesday after choppy trading as U.S. inventories increased unexpectedly last week and the world's biggest oil exporter Saudi Arabia intended to raise output to meet rising demand.

U.S. Energy Information Administration said crude oil inventories last week increased unexpectedly by 1.3 million barrels, exceeding market's estimates. And the gasoline stocks rose 5.1 million barrels, showing weak demand.

Besides, Saudi Arabia on Wednesday expressed intention to raise output to meet the market demand before the Organization of the Petroleum Exporting Countries' meeting due on Dec. 14. The world's biggest oil exporter said that it pumped 10.047 million barrels per day in November, the highest level for decades and would further raise production if necessary.

The OPEC planned to meet next week in Vienna to coordinate their output policy for early 2012.

And about euro zone, after earlier hopes, investors returned to be pessimistic on Germany's less confidence in Friday's EU summit. The bloc's powerhouse saw little chance for European leaders to reach a deal in solving the region's ongoing debt crisis.

Brent crude trading volume was low, down about 17 percent from its 30-day average, while U.S. crude trading volume was 6 percent above the 30-day average.

Light, sweet crude for January delivery slipped 79 cents to settle at 100.49 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for January delivery dropped 1.28 dollars, or 1.16 percent to close at 109.53 dollars a barrel.
 

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn