Oil Prices Fall As Supplies Grow
NEW YORK (AP) — Oil prices are falling because U.S. supplies have increased and Western nations may be considering a release of additional barrels onto the world market.
Benchmark U.S. crude fell $2.25, or 2.1 percent, to $105.09 per barrel in New York while Brent crude lost $1.71 to $123.83 per barrel in London.
Prices tend to fall as supplies go up. The amount of oil in storage rose last week, according to government data released Wednesday. And the U.S. and Europe are thinking of supplying markets with oil from emergency reserves in hopes of pushing prices even lower.
The tactic briefly worked last summer. Then, the concern was the loss of Libyan exports and tighter world supplies. This time, policy makers are concerned that a prolonged standoff with Iran could disrupt supplies.