Oil prices fall further in Asian trade

World oil prices fell further in Asian trade after the US government reported another rise in crude oil inventories against the backdrop of a possible US recession.New York's main oil futures contract, light sweet crude for delivery in March, was 22 cents lower at $86.92 a barrel. The contract closed down $1.27 at $ 87.14 per barrel in the wake of the weekly US inventory report.
Brent North Sea crude for March delivery was 13 cents lower at $87.65 a barrel after settling $1.04 lower at $87.78 in London.Prices slumped after the US Department of Energy said American crude oil inventories had jumped by 7.0 million barrels in the week ending February 1, the fourth straight rise in crude stocks.The increase was much higher than analysts' consensus forecast, which had predicted a gain of 2.2 million barrels.US gasoline, or petrol, stockpiles increased by 3.6 million barrels, which also beat market expectations calling for a 1.7-million-barrel rise.
"Our belief is the US won't actually go into a recession," but the oil market thinks it will, he said, and that has put downward pressure on prices.The United States is the world's biggest oil consumer, so slowing US growth can have a knock-on effect on global crude prices.