LONDON, 26 August 2004 — Oil prices steadied yesterday after three consecutive sessions of losses as traders reacted cautiously to weekly US oil inventory data and two unexplained plane crashes in Russia. The price of benchmark Brent North Sea crude oil for delivery in October was up just one cent at $42.33 a barrel in late deals in London.
New York’s main contract, light sweet crude for October delivery, gained nine cents to $45.30 a barrel in early trading, far below Friday’s all-time high of $49.40.
Traders initially showed some nervousness over news of two near simultaneous plane crashes in Russia, which prompted speculation of possible terrorist involvement.
But the market’s attention later switched to weekly estimates of US oil stock levels.
Crude oil inventories in the week to Aug. 20 dropped 1.7 million barrels to 291.3 million, the Energy Department said, the fourth consecutive weekly drop. Gasoline stocks were steady at 205.7 million. Distillates — mostly diesel and heating oil — climbed 500,000 barrels to 125.1 million, according to the US government figures.