Crude oil prices lower on continuing demand worries

Oil prices fell Thursday after Wednesday’s gains on a report from the US Energy Information Administration that showed that crude oil inventories fell slightly last week.

April contracts for West Texas Intermediate Crude was down $1.77 to $43.61 per barrel on the New York Mercantile Exchange while Brent crude dropped $2.22 to $43.90 per barrel on the ICE Futures Europe exchange in London.

The declines came on worries that continuing bad economic news means that demand will continue to decline and after a speech from the Chinese premier that did not include expected additions to stimulus efforts in that Asian nation.

Nymex April gasoline was 7 cents lower to $1.31 per gallon while April heating oil dropped 5 cents to $1.16 per gallon and April natural gas was down 25 cents to $4.09 per million British thermal units.

At-the-pump prices for gasoline in the United States was unchanged overnight at an average $1.933 per gallon nationally, according to AAA.

There was still uncertainty over whether the Organization of Petroleum Exporting Countries will cut production again when it meets later this month.

While some member nations are asking for the cuts, there are rumors that Saudi Arabia will resist any reductions.