Oil prices down

Oil prices dipped below the 60 US dollars a barrel mark in New York today as fears over supply shortages eased.

Figures from the United States showing a rise in oil stocks contributed to the relief – leaving the cost of crude well below August’s record level of more than 70 US dollars a barrel.

Forecasts that Hurricane Wilma will miss key oil facilities were another factor.

But experts warned the price could move up again fairly swiftly.

Kevin Norrish, oil analyst at Barclays Capital, said: “We don’t see this as a turning point for the oil market in any way. It is a period of temporary weakness.”

The US government’s latest inventories report showed a rise in both crude and gasoline stocks.

This followed the release of 60 million barrels of oil by the International Energy Agency (IEA) after Katrina devastated Gulf of Mexico oil facilities. The IEA said on Thursday that it was prepared to take action to address future shortages if necessary.

Weather forecasts added relief, with continued predictions that Wilma is likely to avoid key oil refineries.

Today’s fall in the oil price sent shares in UK oil giants BP and Royal Dutch Shell lower in London.