Oil falls in warning on lower US inventories

The United States Department of Energy reported Wednesday that stockpiles of crude oil as well as gasoline had fallen by 1.8 million barrels since last week, an unexpected retreat after ten weeks of higher supplies.

While the decrease was explained at least in part by lower imports and higher refinery runs, the report, working in concert with unfavorable reports out of some top oil companies and fears that high energy prices are damaging global economic growth, sent crude oil prices lower on Thursday after three straight days of rises in price.

By late morning in London, Brent June deliveries or crude oil had fallen 39 cents to $53.59 per barrel and June deliveries of Nymex were down 53 cents to $53.50.

An announcement from the Saudi oil minister also had an effect on prices. He said on Thursday that Saudi Arabian oil reserves could last for over 100 years. He said that his country has 261 billion barrels of proven reserves and another 100 billion barrels of probably and possible reserves.

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