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Oil prices remain below $50

01 April 2009 08:25 (UTC +04:00)

Bakuâ€“ APA-Economics. Oil fell below $49 a barrel, after capping its biggest monthly gain since May, on speculation that a government report today will show U.S. inventories rose from the highest level in more than 15 years as fuel demand slows, Bloomberg reports.
Crude oil for May delivery fell as much as $1.38, or 2.8 percent, to $48.28 a barrel in electronic trading on the New York Mercantile Exchange. It was at $48.46 a barrel at 12:47 p.m. Singapore time. It has slumped 52 percent in the past year.
Oil rose $1.25, or 2.6 percent, to $49.66 a barrel yesterday as equities gained and a weaker dollar enhanced the appeal of commodities. Crude gained 11 percent in the first quarter after tumbling 56 percent in the previous three months. Last monthâ€™s 11 percent increase was the biggest on a monthly basis since a 12 percent jump in May.
Brent crude oil for May settlement fell as much as $1.32, or 2.7 percent, to $47.91 a barrel on Londonâ€™s ICE Futures Europe exchange. It was at $48.18 a barrel at 12:40 p.m. Singapore time.
The price of oil on the Nymex for delivery in June is $1.79 a barrel higher than for May, up from $1.71 premium yesterday and a $1.42 premium on March 25.
The structure in which the future monthâ€™s price is higher than the one before it, known as contango, allows buyers to profit from hoarding oil.