Oil prices fall as US supplies grow

[AP] - Oil prices fell Wednesday after the government reported crude oil supplies rose last week, and new data showed OPEC production reached a two-year high.

Oil prices are falling because U.S. supplies have increased and Western nations may be considering a release of additional barrels onto the world market.

It seems that no matter what financial series you look at, there's a similar pattern of ups and downs over the last few years. I was curious to get a quick quantitative impression of how much of a contribution aggregate factors have been making to recent movements in the price of oil.

Slow economic growth and ample supplies are expected to keep a lid on oil next year with crude prices gradually slipping lower. But analysts polled by Reuters say a price crash is unlikely and geopolitical concerns should help support the market. Reuters monthly survey of 26 analysts forecast North Sea Brent crude oil will average $108 per barrel in 2013, down from an average of $111.71 so far this year. Brent prices are projected to fall further to an average of $105.90 in 2014, the poll showed.

By Lior Cohen:During last week, the price of oil declined by 3.4%. United States Oil (USO) also fell by 3.2%. The fall in oil prices may have curbed the recent rally of energy companies' stock such as Exxon Mobil Corporation (XOM).

By Lior Cohen: The sharp tumble of oil prices in recent weeks seems to take its toll on Exxon Mobil Corporation (XOM). If this fall in oil prices will continue, by how much will it affect XOM (assuming all things equal)?

Ohio Senator Sherrod Brown claims that excessive oil speculation is partly to blame for high oil and gas prices and recently called for the Commodity Futures Trading Commission to intervene.