14 May 2009

Oil follows Wall Street down

8:47 am on 14 May 2009

Oil prices dropped 1.4% on Wednesday after a surprise drop in crude and gasoline stockpiles in the United States.

US crude fell 83 cents to settle at $US58.02 per barrel. London Brent fell 60 cents to $US57.34 per barrel.

The US Energy Information Administration says crude inventories fell by 4.7 million barrels.

Oil prices reached a record high of $US147.27 per barrel on 27 July last year.

A rally in stock markets during the last few months has helped lift crude almost 80% from a low of $US32.70 per barrel in January.