Oil prices were down in Asia this morning on fears of faltering energy demand after US crude reserves increased, while the euro zone debt crisis shows no signs of abating.
US crude fell 16 cents to $97.27 a barrel, while Brent North Sea crude shed 39 cents to $117.36.
The American Petroleum Institute reported last night that crude inventories increased by 2.3 million barrels last week to 359.4 million, the first rise in six weeks. Increasing crude inventories indicate weaker demand in the US, the world's biggest oil consumer.
Meanwhile, the euro zone debt crisis, which has already sparked international bail-outs for Ireland, Greece and Portugal, is now threatening to spread to Italy and Spain.
Crude prices had rebounded on Tuesday on rumours that the European Central Bank was buying the bonds of distressed European governments and after the US Federal Reserve indicated it planned only a gradual easing of its ultra-loose monetary policy.
