Crude oil prices tumbled to a six-week low and recording a second consecutive losing week as dismal economic data and piling oil inventories in the USA kept markets worried about the outlook for oil demand. A stronger dollar has also asserted pressure on oil prices as money shifts out of riskier commodities and also because countries using other currencies must pay more for dollar-denominated oil.
The US Energy Information Administration reported that the combined U.S. crude and refined products inventories rose to 1.130 billion barrels in the week to 13 August -- the highest level since the government began tracking weekly levels in 1990. Thus oil prices have lost over 10% from the 4 August high of US$82.97 a barrel, returning to the US$70-80 band they have been mostly confined in since last October. The week closed with prices at US$73.46 a barrel on the New York Mercantile Exchange US$1.93 from last week-end while in London, the Brent crude was down US$0.88 settling at US$74.26 a barrel on the ICE futures exchange.
