Oil falls to start week; pump price down to $3.70

The price of oil fell today as the momentum seen at the end of last week faded. The benchmark oil contract for April delivery slipped by 55 cents to USD 91.40 a barrel in midday trading on the New York Mercantile Exchange. Oil rose nearly 2 per cent on Thursday and Friday on signs of strength in the US job market.

Many traders believe the large supply of oil in the U.S. will keep a lid on the price. Last week the Energy Department said that the nation's supply of crude is 10.3 per cent above year-ago levels. And U.S. oil production, at more than 7 million barrels a day, is at the highest level since the late 1990s.

Also read:Defence Ministry clears oil blocks of RIL, others

Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, estimates that oil supplies grew another 2.5 million barrels in the week ended March 8. Pump prices fell slightly over the weekend. The nationwide average for a gallon of gas is USD 3.70, down 9 cents from a year ago. Brent crude, used to price many kinds of oil imported by US refineries, fell 80 cents to USD 110.05 a barrel on the ICE Futures exchange in London.