Oil prices fall below 72 dollars

World crude oil prices retreated for a third day Wednesday after the government's temporary halt to any increases of the U.S. strategic petroleum reserve.

New York's main contract, light sweet crude for delivery in June, fell 95 cents to 71.93 dollars a barrel.

On London's ICE Futures exchange, the price of Brent North Sea crude for June delivery dropped 1.12 dollars to close at 72.09 dollars.

Inventories of U.S. commercial crude oil and gasoline declined last week, the Energy Department reported Wednesday in its weekly nationwide survey.

Data showed that the nation's commercial crude oil inventories fell by 200,000 barrels last week to 345 million barrels, or 5.6 percent above year-ago levels. Gasoline stockpiles plunged 1.9 million barrels to 200.6 million barrels, or 5.6 percent below year-ago levels.

At the same time, supplies of distillates, which are used to make heating oil and diesel, increased by 1 million barrels to 115. 6 million barrels, or 10.6 percent higher than last year.

U.S. President George W. Bush on Tuesday ordered a temporary halt to any increases of the strategic petroleum reserve in a bid to lower soaring gasoline prices in the country.

Bush said the U.S. strategic petroleum reserve had enough fuel to guard against any major supply disruption over the next few months.

At present, the U.S. government's strategic petroleum reserve totaled about 700 million barrels.

Traders are still concerned about Iran's nuclear standoff with the international community and violence in Nigeria that has forced the shutdown of more than half a million barrels a day of supply.

Source: Xinhua