Oil prices plummet as inventories rise

World crude oil prices fell below 67 dollars a barrel Wednesday while U.S. commercial crude oil and gasoline inventories rose.

New York's main contract, light sweet crude for delivery in March, dropped 1.36 dollars to settle at 66.56 dollars a barrel, after hit a high of 69 dollars earlier in the session. In London, the price of Brent North Sea crude for March delivery fell 96 cents to close at 65.03 dollars a barrel.

On the New York Mercantile Exchange, heating oil futures fell 2. 39 cents to settle at 1.824 dollars a gallon, while natural gas fell 59.3 cents to 8.723 dollars per 1,000 cubic feet.

In the week ended Jan. 27, commercial crude oil reserve rose by 1.9 million barrels to 321 million, or 11.4 percent above year ago level, said U.S. Energy Department Wednesday. Analysts had been expecting an increase of only 383,000 barrels.

France, Germany and Britain, which represent the European Union, tabled a draft resolution Tuesday on Iran's nuclear issue to the IAEA Board of Governors, urging the issue be referred to the UN Security Council.

Iran announced to relaunch nuclear research on Jan. 10, igniting tension between the West and this second biggest oil producer within the OPEC.

Source: Xinhua