Oil prices fell sharply this evening after China unexpectedly raised bank reserve requirements in a move that could slow its demand for commodities imports, Figures also showed that US oil stockpiles rose by more than expected last week.
China's central bank said it would boost bank reserve requirements at the end of the month for the second time this year. The move could tighten lending and slow China's booming economy, limiting demand for commodities like oil.
Oil prices also fell after US government data showed crude oil and petrol stockpiles rose more than expected last week in the world's top energy consumer.
US crude fell $1.33 to $73.95 a barrel, while Brent crude dropped $1.37 to $72.75.
US crude stocks rose by 2.4 million barrels last week, the Energy Information Administration said, exceeding forecasts for an increase of 1.5 million barrels. Petrol stocks also rose by more than forecast, indicating weaker demand.
