Oil prices ease as US taps strategic reserves

0 Comments | AFP, September, 2008

SINGAPORE (AFP) — Oil prices fell in Asian trade Wednesday as the US government announced the release of oil from its strategic reserve to help with recovery efforts after Hurricane Gustav.

In afternoon trade New York's main contract, light sweet crude for October delivery, dropped 71 cents to 109.00 dollars a barrel, while Brent North Sea crude for October delivery eased 74 cents to 107.60.

The United States announced Tuesday it was releasing 250,000 barrels from its emergency supplies, known as the strategic reserve.

"The release of the oil will prevent any shortage and that will, of course, help calm the market," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

The US Strategic Petroleum Reserve is a complex of...