Crude-oil futures declined on Thursday for the first time in six days, down 1.5 percent to settle near the 98-dollar-a-barrel mark, after government data showed U.S. crude inventories have risen more than expected.
Crude for April delivery, the new front-month contract, declined 1.47 dollars to close at 98.23 dollars a barrel on the New York Mercantile Exchange.
The Energy Information Administration reported U.S. crude inventories rose 4.2 million barrels in the week ended Feb. 15, surpassing the increase of 3.2 million barrels that analysts at Platts had expected.
Many analysts believe rising supplies and the falling demand noted in a number of recent reports mean oil prices will eventually fall.
Prices have spiked in recent days on buying fueled in part by investors attracted to the oil market by the falling dollar. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the greenback is falling.
Speculative investment has grown in recent weeks as funds have turned to commodities to hedge against inflation, pushing prices to average 93.02 dollars a barrel this year, up nearly a third on the 2007 average of 72.30 dollars.
Source:Xinhua
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