The decelerated progress in the U. S. economy reducing the consumption of fuel led to a decline in stock markets which ultimately pulled down the prices of cured oil.

Anticipating a review of the U. S. economy , the stock markets in Asia showed a weak performance due to which the oil prices plummeted down for consecutive three weeks , the longest ever since May. As per the report of the Federal Reserve Bank of Kansas City, the manufacturing sector is growing gradually in August. The Energy Department’s report stated that the crude oil reserves of U. S. has increased surpassing the previous week’s forecast.

The Sydney based Commodity Broking Services Pty Managing Director Mr Jonathan Barratt has said that the oil stock prices are falling and the basic scenario does not provide for any optimism. The prices could further go down if the $70 barrier is broken putting the oil stocks under more stress.

The future for job market and the funding for businesses appears bleak forcing the Economists to size down their estimates who had earlier predicted a faster economic revival during the last six months of the year.

The build up stocks of fuel and oil supplies in U. S. have gone up by 8.92million barrels to 1.14 billion in the previous week which is the maximum level reached ever since the last twenty years as per the statement of the Energy Department.

The Energy Department said that the stock up on the crude oil increased to 358.3 million barrels by 4.11 million in the week ago and the physical stocks are estimated to go up by 3 million barrels.

The Dow Jones Industrial Average fell by 0.7% the day before and the Standard & Poor’s 500 Index plunged by 0.8% in New York. The stocks in the Asian markets also dived down for the third consecutive week.

The tanker-tracker Oil Movements said that the oil refining companies have reduced their crude oil purchase to get the maintenance work done forcing the OPEC to trim down their crude exports by 0.3% from the middle of the coming month.