Oil Falls

Oil declined in New York before a report forecast to show that U.S. crude inventories increased last week.
TradingEconomics.com, Bloomberg 1/22/2009 6:19:27 AM

U.S. crude stockpiles probably rose 1.4 million barrels in the week ended Jan. 16, according to the median of 14 analyst estimates in a Bloomberg News survey. It would be the 15th gain in 17 weeks. Stockpiles at Cushing, Oklahoma, where the West Texas Intermediate grade traded in New York is stored, have risen to their highest in at least four years.

Crude oil for March delivery declined as much as 61 cents, or 1.4 percent, to $42.94 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $43.03 at 1:51 p.m. London time.

Saudi Arabia, the world’s top oil exporter, decided to cut production by 300,000 barrels a day below its OPEC quota to prop up prices, Algerian Oil Minister Chakib Khelil told the state- run newspaper El Moudjahid. The Organization of Petroleum Exporting Countries controls 40 percent of the world’s oil.

The U.S. Energy Department releases its weekly supply report at 11 a.m. today in Washington, a day later than usual because of the Martin Luther King Jr. holiday on Jan. 19.