Oil Declines Towards $68 on Demand Concerns

23 September 2009 (Last Updated September 23rd, 2009 18:30)

Oil prices extended losses and fell closer towards $68 a barrel on Thursday, reported Reuters. Crude oil prices fell nearly 4% in the previous session and are on track to shed about 5% this week, as demand concerns resurface. US crude for November delivery fell $0.63 t

Oil prices extended losses and fell closer towards $68 a barrel on Thursday, reported Reuters.

Crude oil prices fell nearly 4% in the previous session and are on track to shed about 5% this week, as demand concerns resurface.

US crude for November delivery fell $0.63 to $68.34 a barrel by 05.12 GMT (1.12am EDT), after settling at $2.79 yesterday.

London Brent crude fell $0.55 to $67.44 a barrel.

The US Energy Information Administration (EIA) reported commercial stockpiles of crude rose 2.8 million barrels in the week to 18 September, against analysts' expectations of a 1.5 million-barrel fall, according to Reuters.

Gasoline inventories increased by 5.4 million barrels to 213.1 million and distillates gained 3 million to hit a 26-year high of 170.8 million, according to the EIA.

In a sign that oil demand was also struggling in Asia, data showed August crude imports by Japan, the world's third-largest energy consumer, fell 12.4% from a year ago and hit their lowest in 20 years.