4 June:World oil prices fell in Asian trade early on Wednesday in reaction to US Federal Reserve chairman Ben Bernanke’s comments about inflation while US crude oil delivery eased to USD 124.01 a barrel.
In early morning trade, New York’s main contract, light sweet crude for July delivery eased 30 cents to USD 124.01 a barrel from USD 124.31 at the close of floor trading On Tuesday in the United States.
New York oil prices had fallen a hefty USD 3.45 on Tuesday after the Fed chairman said the US central bank was being "attentive" to the sagging dollar because of its potential impact on inflation.
London’s Brent North Sea crude for July delivery lost 43 cents to USD 124.15 a barrel."The days of establishing new record prices appear to be temporarily over," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.
"The market is now really reacting to the comments made by the US Federal Reserve on Tuesday regarding his concerns on inflation," he said.Oil prices have now lost around USD 11 since striking record peaks of USD 135.14 in London and USD 135.09 in New York on 22nd May.
Bernanke, speaking via satellite from Washington to a monetary conference in Barcelona, Spain, offered a mixed assessment of US economic conditions, while highlighting concerns about inflation and the dollar.
He also said oil price rises "pose additional downside risks to growth." Courtsey : DD NEWS
Meanwhile, Kuwait’s Oil Minister Mohammad al-Olaim said the Organisation of Petroleum Exporting Countries was prepared to pump more crude if necessary.