Business

Oil price falls for third day

  • 16 September 2010
  • From the section Business

Oil prices have fallen for the third day in a row as a US government report suggested that demand remains sluggish.

The Energy Information Administration (EIA) said on Wednesday that despite falling by 2.5 million barrels last week, US crude stocks are still 7.4% above last year's levels.

US crude for October delivery fell by more than a dollar to $74.92 a barrel.

News that a key pipeline is expected to reopen after a week-long shutdown also weighed on prices.

Canadian firm Enbridge said that its pipeline near Chicago, which carries about 670,000 barrels per day, would return to service early on Friday. It was shut down after a leak was discovered on 9 September.

Commenting on the EIA report, research house Cameron Hanover said in a note: "The increases in those surpluses cannot just be dismissed, regardless of the week-on-week improvements.

"There is still more oil than there has been for nearly three decades."

In London, Brent crude fell 13 cents to $79.29 a barrel.

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