Oil prices fall, supplies on the rise

| 2/16/2006

The price of oil fell sharply amid news that U.S. crude oil stockpiles were four times higher than anyone on Wall Street had anticipated.

CNN reported that prices fell to $57.65 per barrel on Wednesday, Feb.15, before bouncing back above $58 per barrel in midday trading on Thursday, Feb. 16.

Prior to the release of the report from the Energy Information Administration, prices had been dangerously close to the $60 per barrel mark.

The report showed a supply increase of 4.9 million barrels for the week ended Feb. 10. Original estimates had been for a gain of 1.2 million barrels.

Analysts said that the report caused a shift away from focus on international politics – mostly the situation in Iran – and brought it around to focusing on U.S. supplies, according to Forbes.

However, Forbes said prices aren’t expected to stay too low for too long, as the situation in Iran isn’t going away any time soon.