Price of crude oil falls as impact of cuts is delayed

CRUDE oil fell for a fifth session on expectations that US inventories will increase even after production cuts by the Organisation of Petroleum Exporting Countries take effect in June.

OPEC, which pumps about a third of the world’s oil, pledged last week to reduce oil output to bolster prices. It takes about 40 days for oil from the Persian Gulf to arrive in the US, delaying the impact of the cuts. US oil imports soared 13% to a record 10.6 million barrels a day in the week ended April 18, the Energy Department said last week.

“Imports should remain relatively high or at record levels into June,” said Marshall Steeves, an analyst with Refco Group Ltd in New York.