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NEW YORK - Oil tumbled more than US$1 this morning (NZ time), backing further off the record over US$101 hit this week, as US economic concerns and growing inventories offset expectations Opec could cut output when it meets next month.
US crude futures for April delivery settled down US$1.47 at US$98.23 a barrel, after the March futures contract hit a record of US$101.32 a barrel before expiring on Wednesday.
London Brent settled US$2.18 lower at US$96.24.
New data showing a slumping US economy pressured stockiles last week in the world's top consumer, nearly double analyst forecasts. Petrol stocks swelled to 14-year highs and distillate inventories fell.
"Overall, the numbers have a bearish tilt, which should increase the emphasis on the Opec meeting in March with regards to production cuts that some in the marketplace are anticipating," said Chris Jarvis, senior analyst at Caprock Risk Management, New Hampshire.
Comments by Opec ministers that the group could hold or even reduce output at a March 5 meeting helped send oil on the record rally approaching the inflation-adjusted high of US$102.53 hit in April 1980, a year after the Iranian revolution.
- REUTERS
