Oil prices dive on ample supplies

Source:Xinhua Published: 2013-5-2 9:13:25

Oil prices dropped sharply on Wednesday as US crude inventories reached an 82-year high.

US crude inventories increased by 6.7 million barrels, to 395. 3 million barrels in the week ending April 26, the highest level since 1931, the Energy Information Administration reported.

Disappointing economic data from US and China, the world's two biggest energy consumers, also weighed on oil prices.

US private companies added 119,000 jobs in April on a seasonally adjusted basis, down from the revised figure of 131,000 a month earlier, also the smallest gain since September 2012, according to the National Employment Report released jointly by ADP and Moody's Analytics.

China's Purchasing Managers' Index (PMI) for the manufacturing sector fell to 50.6 percent in April from 50.9 percent in March, the China Federation of Logistics and Purchasing said on Wednesday.

Meanwhile, the Institute of Supply Management's April manufacturing PMI for the United States stood at 50.7, decreasing from 51.3 in March.

Light, sweet crude for June delivery lost 2.43 dollars, or 2.6 percent to settle at 91.03 dollars a barrel on the New York Mercantile Exchange.

Brent for June delivery shed 2.42 dollars, or 2.36 percent, to close at 99.95 dollars a barrel.

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