Oil prices held near $119 a barrel Wednesday as weekly data was being collected to further confirm declining crude oil demand in the United States. In Europe, New York and London, crude oil prices went down by margins from 53 cents per barrel to around $2.25 per barrel. Commodity market insiders speculated that oil prices would probably continue to drop unless the U. S. Energy Department’s Energy Information Administration’s weekly oil inventory report shows that gasoline stocks fell significantly as well.
The worldwide market appeared to be reacting to uncertain demand outlook in several countries. The U.S. Federal Reserve issued a statement Tuesday that its key interest rate would remain at 2 percent for the time being. In summation, the Fed statement said that higher energy prices were bound to affect the economy over the next few fiscal quarters, possibly lead to a marked reduction in the demand for bulk oil.