Oil prices drop below US$124 a barrel in Asia after mixed US inventory report

Oil prices dropped below US$124 a barrel Thursday in Asia after the U.S. government issued a mixed report on the country's petroleum reserves.

The Energy Department said diesel stockpiles there rose last week, and news of the build eased concerns about the fuel used to transport most food and consumer goods. The government also said crude oil inventories were up, but not by as much as expected.

Light, sweet crude for June delivery fell 46 cents to US$123.76 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract fell US$1.58 to settle at US$124.22 a barrel on Wednesday.

In its report, the …