Oil dips towards 100 USD on lower Demand
'Pakistan Times' Wire Service

LONDON: Oil prices dipped towards 100 usd per barrel in early London trade, with a lower demand outlook and rising crude inventories contributing to the move away from recent record levels.

'The oil market has (finally) begun to focus upon fundamentals which point to slowing demand and adequate supply levels,' said Bank of Ireland Paul Harris. 'The next few sessions are likely to continue the retracement to more sustainable levels.'

Oil prices have rallied to a series of all-time highs in recent weeks, spurred by strong buying interest from investment funds attracted to commodities by weakness in the US dollar and poor returns from bonds and equities in the current economic climate.

However, with rising crude inventories in the US, the dollar off its lows, and forced fund liquidation caused by the need to cover losses elsewhere, crude prices have eased by around 10 percent in the past week.

Seasonally lower demand in the second quarter, and concerns over the strength of the US economy are also contributing to a pull back in prices, analysts said.

At 10.33 am, New York's WTI crude for May delivery was down 72 cents at 100.14 usd per barrel. In London, Brent crude for May delivery was down 27 cents at 99.59 usd per barrel.●