Oil prices down ahead of inventories report

Crude oil prices fell again on Wednesday as recession fears continued to affect global markets and ahead of the weekly US inventories report, due on Thursday this week after Monday’s holiday in the US, which are expected to show gains in crude oil, gasoline and distillates stockpiles.

Despite declines from $100 per barrel prices reached earlier in the year, US Energy Secretary Sam Bodman said in remarks delivered in Cairo that he believes high oil prices have begun to have a negative impact on the US economy.

March contracts for West Texas Intermediate were $2.22 lower to $86.99 per barrel on the New York Mercantile Exchange, the lowest close in three months, while Brent crude for March delivery was down $1.76 to $86.69 per barrel on the ICE Futures Europe exchange in London.

Nymex February gasoline fell 3 cents to $2.25 per gallon and March heating oil was down 4 cents to $2.42 per gallon while March natural gas dropped 9 cents to $7.56 per million British thermal units.