Stockpiles may be down but oil prices fall $4 on demand concerns (Reuters) (30-05-2008)

NEW YORK (Reuters) - The price of crude oil fell sharply by $4 on Thursday as investors were more concerned regarding global energy demand and the strength in the dollar and largely disregarded the report showing the biggest decline in U.S. stockpiles since 2004.

U.S. crude settled down $4.41 at $126.62 a barrel, while London Brent gave up $4.04 to $126.89 a barrel, extending the commodity’s retreat from last week's record above $135 a barrel.

The slump in oil prices also came after the top U.S. futures market regulator said it will step up surveillance of energy trading, tracking index funds and reaching across the Atlantic to grab more information on oil contracts based on American crude that are traded in the United Kingdom.

U.S. lawmakers had hammered the Commodity Futures Trading Commission for months to improve monitoring and to crack down on speculators whom they blame for pushing up energy prices to record levels.

  Source Reuters