Commodities: Crude prices fall

06.12.2007

Oil prices fell despite OPEC members deciding to keep output steady and weekly crude inventories falling as traders concentrated on growing gasoline and distillate inventories.

Prices had risen earlier in the day after the OPEC Countries decided to keep production unchanged at meeting in Abu Dhabi, despite expectations that output could be raised.

But crude fell to near six week lows, down 83 cents to $87.49 a barrel, after the US Energy Information Administration report.

US crude inventories fell by 8m barrels to 305.2m barrels last week but the EIA also reported that gasoline supplies rose by 4m and distillate stocks increased by 1.4m.

Gold prices were down $3.90 to $803.70 as the dollar moved ahead against the euro and the sterling.

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