Oil prices fall after U.S. data release<\/p>\n
SINGAPORE (Reuters): Crude oil prices fell in Asia on
\nWednesday after U.S. stocks data showed a surprise rise.<\/p>\n
Crude stocks increased in the final week of 1999 by 620,000
\nbarrels when a decline of 4.3 million had been forecast.<\/p>\n
At 0835 GMT, U.S. February light crude futures were last
\ntraded at US$25.30 per barrel, down 25 cents from New York's
\nclose.<\/p>\n
The American Petroleum Institute (API) issued data late on
\nTuesday which also showed a stronger than expected reduction in
\nproduct stocks.<\/p>\n
The crude data surprised partly because stocks have
\ntraditionally been sharply reduced at the end of the year for tax
\npurposes.<\/p>\n
In the five years through 1998, U.S. crude stocks on average
\nhave slumped 10.7 million barrels in the final week of the year.<\/p>\n
But analysts said stock policies this year were affected by
\nworries about the so-called Y2K bug and OPEC's stringent supply
\ncuts, aimed at keeping 4.3 million barrels per day of crude off
\nworld markets.<\/p>\n
That meant refineries and other oil companies kept stocks as
\nhigh as they could, fearing a supply deficit in the first
\nquarter, analysts said.<\/p>\n
Regulators and authorities have given the globe's oil sector a
\nclean bill of health with few Y2K related problems spotted.<\/p>\n
The U.S. Department of Energy, which is scheduled to release
\nlater on Wednesday its own stock data covering the final week of
\n1999, said that oil stocks were increased by some 17 million
\nbarrels as a precaution against potential Y2K bugs. This may be
\nreleased back into the market place in the weeks ahead.<\/p>\n
Weather forecasts see above-average temperatures across the
\neastern, southern and central regions of the United States in the
\nnext six to 10 days, which had undermined prices on Tuesday --
\nthe first full days trading in 2000.<\/p>",
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