World oil prices down

Crude oil prices fell on Wednesday as many traders took profits before
a bank holiday weekend and the latest snapshot of energy inventories
in the United States. New York's main contract, light sweet crude for
delivery in July, sank $1.22 to $98.37 per barrel.Brent North Sea
crude for July retreated $1.13 to $111.40 a barrel in morning London
trade. The market had rebounded on Tuesday, lifted by a weak dollar
and a bullish price forecasts from US banks Goldman Sachs and Morgan
Stanley. 'Investors might be taking in profits as it is approaching a
long weekend in the US market,' said Ker Chung Yang, commodity analyst
for Phillip Futures in Singapore, referring to a public holiday on
Monday to mark Memorial Day. Later on Wednesday, the US government's
Department of Energy will unveil the state of American reserves in the
week ending May 20. 'Today, the market briefly turns its attention to
inventory numbers,' said VTB Capital commodities analyst Andrey
Kryuchenkov. Crude inventories are expected to drop by 1.2 million
barrels, according to analysts polled by Dow Jones Newswires.Gasoline
or petrol stockpiles are seen falling by 1,00,000 barrels, while
distillates—including diesel and heating fuel—are forecast to remain
unchanged. Kryuchenkov added that the gasoline figures will be eagerly
awaited ahead of the peak-demand driving season in the United States,
which sees many Americans hit the road for the holiday season.
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