Wednesday 16 March 2011

Crude Oil Falls to Two-Week Low as Japan Fuel Demand May Drop After Quake - Bloomberg

Oil fell to the lowest in two weeks in New York amid concern that the earthquake in Japan may reduce fuel demand in the world’s third-largest crude user.

Prices fell as much as 1 percent after reports of additional damage and fires at a nuclear plant underscored the extent of destruction across Japan. About 1.3 million barrels a day, or 29 percent, of the country’s refining capacity was closed after the country’s largest temblor on record. Oil earlier gained 1.1 percent on speculation unrest in the Middle East may lead to supply disruptions.

“The Middle Eastern premium seems to be eroding as we concentrate in an uptick in supply as a result of Japan shutting down refining capacity,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney.

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