Oil prices drop amid ample supplies

New York, Feb 20 (IANS) Oil prices dropped on Friday as the enormous stock dragged the market down.

The US crude supplies of last week added 2.1 million barrels to 504.1 million barrels, 78.5 million barrels more than one year before, according to the weekly report of the US Energy Information Agency (EIA) on Thursday.

Inventories at Cushing, Oklahoma, the delivery point for the US contract, gained 30,000 barrels to 64.73 million barrels.

The US oil rig count tumbled 26 to 413 this week, the lowest level since December 2009, according to the report of oil service company Baker Hughes on Friday.

Traders believed that it takes time for market to draw down the huge stockpiles.

The West Texas Intermediate for March delivery moved down $1.13 to settle at $29.64 a barrel on the New York Mercantile Exchange, while Brent crude for April delivery decreased $1.27 to close at $33.01 a barrel on the London ICE Futures Exchange.

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