Global Economy Worries Send Oil Prices Lower

After reaching a one-month high Tuesday, the price of the "black gold" plummeted 2.74 percent Thursday as high oil storages and woes over economic progress in China and the United States weighed on commodities and on Gulf Arab revenues.

At the Dubai Mercantile Exchange (DME), the flagship future contract DME Oman crude lost 2.96 U.S. dollars to 104.89 dollars. Weaker manufacturing data from China and the United States at the beginning of the week renewed doubts over strong economic rebound in the world's two biggest economies. News that U.S. oil total stocks reached the highest level since 1990 also weighed on the black gold.

The U.S. Energy Department said crude oil supplies grew by 2.7 million barrels, or 0.7 percent, to 388.6 million barrels in the week ended March 29. The United States' supply of oil is now 7.2 percent above year-ago levels and the highest since July 27, 1990, when it was at 391.9 million barrels.

In the last 12 months oil prices contracted 7.42 percent, weighing on oil supplier income. Jadwa Research in Riyadh said earlier this week, Saudi Arabia, the world's biggest oil exporter, generated 46.2 billion dollars of oil revenues in the first two months this year, down 8.8 percent over the same period last year.