Prices falling as inventories strengthen

Crude oil prices fell again on Thursday after gains early in the day as it was announced that OPEC that it might slow down production if US inventories continue to climb.

West Texas Intermediate prices for June was down 20 cents to $47.05 per barrel in early afternoon trading on the New York Mercantile Exchange; July contracts were down 23 cents to $48.90 per barrel.

Meanwhile, in late afternoon trading in London, IPE Brent June contracts were down 15 cents to $48.02 per barrel. The 10 OPEC nations that operate under quotas are pumping around 1 million barrels per day above the official limit of 27.5 million barrels per day at present.

When production from Iraq, currently not operating under quota, is taken into account, OPEC is pumping nearly 30.3 million barrels of oil per day.