2 Oct 2008

Oil falls below $US96/b

5:57 am on 2 October 2008

Oil has fallen below $US96 a barrel after a larger than expected increase in crude inventories in the United States.

US crude fell more than $US4 as low as $US95.95 a barrel on Wednesday, reversing a rise of more than $US2 earlier in the day. By 1530 GMT, it was trading $US2.92 lower at $US97.72 a barrel.

London Brent crude was $US3.77 down at $US94.40.

Crude oil inventories in the United States increased by 4.3 million barrels last week.

The Energy Information Administration also reported an increase of 900,000 barrels in gasoline stocks. Total oil product demand over the past four weeks is down 7.1% from a year earlier.