World oil prices fell yesterday as traders digested a larger-than-expected increase in US crude reserves alongside news of record-high inventories at the key hub of Cushing, Oklahoma. Earlier data showed the euro zone’s manufacturing sector slipped while US private employers added fewer jobs than expected, both in April. Euro zone unemployment spiked to a record 10.9 percent in March, data showed, piling pressure on governments to shift from austerity-first to growth policies. In London, ICE June Brent crude was down $1.73 at $117.93 by 12:05 p.m. EDT (1605 GMT). US crude for June delivery fell $1.12 to $105.04, after dropping below its 50-day average of $105.22. The US Department of Energy (DoE) revealed that American crude reserves rose by 2.8 million barrels in the week ending April 27. That beat market expectations for a gain of 2.1 million barrels, according to analysts polled by Dow Jones Newswires, and indicated weakening demand in the world’s biggest oil consuming nation.
Fresh worries over economy hit oil prices
