Oil Price Nears $80 as Crude Stocks Fall

US oil prices inched towards $80 a barrel today following the release of a report showing a decline in crude oil stocks last week, though gains were restricted by an uncertain outlook for energy demand and economic growth.

US light crude oil futures increased by 60¢ to $79.74 a barrel by 9.20am GMT, which is more than Tuesday’s increase of 24¢, according to Reuters.

London Brent crude increased by 58¢ to $79.55.

According to the American Petroleum Institute’s weekly data issued yesterday, last week’s US crude inventories recorded a steep decline of 4.4 million following a storm in the Gulf of Mexico that interrupted supply.

The International Energy Agency said that oil prices have increased compared to the below $33 price recorded in December 2008, even though there is a year-on-year drop in global demand for the initial nine months of 2009.