Crude futures edged down on the news of slower US economic growth and rising crude inventories. The bearish trend has brought the prices under $52, but may soon be expected to reverse, as the price may start rising. The U.S. Commerce Department’s revealed a report of 3.1 percent growth rate in the nation’s economy in the first quarter of 2005, which dampens expectations for further growth.

June crude oil futures declined $0.10 to $51.67 a barrel.

On Wednesday the Energy Department reported a rise of 5.5 million barrels in US crude inventories in the week ended April 22, leaving them at 324.4 million barrels. This is slightly above the average for this time of the year. The Strategic Petroleum Reserve is coming closer to the target level of 700 million barrel being now at 690.7 million barrels.

The agency report indicated a drop of distillate supplies amounting to 1.4 million barrels, and a decrease of 300,000 barrels in gasoline supplies. This is also the upper end of the average range for gasoline inventories at this time of the year.

President Bush also added to the downward pressure signalling his determination to act to bring down oil prices, as he talked to Saudi Prince Abdullah and announced the plan to turn military bases into refineries to boost US refining capacity.

Even so, prices are still 33% above last year’s levels.