Oil retreats to $37 ahead of US data

LONDON – US oil prices retreated to US$37 a barrel yesterday ahead of US data expected to show rising oil inventories, easing worries of a summer supply crunch in the world’s biggest energy consumer.

The US government was expected to report later yesterday that oil stocks expanded last week by more than five million barrels, as crude imports remained high and the country’s refineries ramped up gasoline production to meet summer demand. However, concerns about potential supply disruption kept any losses in check, with major oil exporter Nigeria’s umbrella labour union on strike on Wednesday and a major Iraqi pipeline still out of service due to sabotage.US light crude futures fell to a new five-week low of US$36,75 per barrel, down 13 per cent from their last week’s peak at US$42,45, the highest price since the New York Mercantile Exchange launched its crude contract in 1983.By 1204 GMT it was trading down 29 cents at US$36,99 a barrel, extending Tuesday’s 3,6 per cent fall.London benchmark Brent crude was down 13 cents at US$34,.92 a barrel.-Nampa-ReutersHowever, concerns about potential supply disruption kept any losses in check, with major oil exporter Nigeria’s umbrella labour union on strike on Wednesday and a major Iraqi pipeline still out of service due to sabotage.US light crude futures fell to a new five-week low of US$36,75 per barrel, down 13 per cent from their last week’s peak at US$42,45, the highest price since the New York Mercantile Exchange launched its crude contract in 1983.By 1204 GMT it was trading down 29 cents at US$36,99 a barrel, extending Tuesday’s 3,6 per cent fall.London benchmark Brent crude was down 13 cents at US$34,.92 a barrel.-Nampa-Reuters