U.S. Oil Price Lowest Five Months Since Abundant Supply

U.S. Oil Price Lowest Five Months Since Abundant Supply


U.S. benchmark oil prices slumped on Tuesday (Wednesday morning GMT ) to a five-month low , as traders anticipated a major report will show U.S. inventories continue to overflow .

Main contract , light sweet crude or West Texas Intermediate ( WTI ) for delivery in December at the New York Mercantile Exchange , fell 1.25 dollars to close at 93.37 U.S. dollars per barrel , the lowest level since early June , AFP and Xinhua reported .

In London trade , Brent North Sea crude for December delivery was down 90 cents from Monday's close to settle at 105.33 dollars a barrel .

Fawad Razaqzada analyst at GFT trading company said the market was hit by " concerns over rising U.S. crude inventories and global demand outlook ( a ) weak . "

" Underlining demand concerns , the European Commission today cut its 2014 forecast for economic growth in the euro zone and raised its estimate for unemployment , " he added .

Oil prices came under pressure as U.S. crude stockpiles have risen in the last six weeks , primarily due to increased domestic production .

Markets are waiting for a weekly report on Wednesday on U.S. oil inventories from the U.S. Department of Energy ( DoE ) , estimate the rise in crude inventories for the seventh consecutive week .

" The U.S. stock market is waiting for tomorrow ( Wednesday ) and the ongoing buildup there is no reason to think that it will change this time , " said Robert Yawger of Mizuho Securities .

DoE is expected to report in U.S. crude inventories rose by 1.9 million barrels in the week ending November 1, according to analysts polled by Dow Jones Newswires .

Crude oil inventories in the United States have risen over the last six weeks , raising concerns about oversupply in the biggest economy and oil consumer in the world was .

U.S. crude oil supplies rose 4.1 million barrels to 383.9 million barrels for the week ending October 25 , due to a sharp rise in the production of shale oil . Traders expect further rise of 2.5 million barrels for the week ending 1 November

Libya's oil production levels also remain in focus , analysts said .

Libyan light crude oil used by refiners in Europe and sharp production cuts forced by the protests in a few months has pushed up prices for alternatives such as Brent .

Investors are also closely watching key economic data due out this week for clues about planned future Federal Reserve monetary policy .

Commerce Department will release gross domestic product figures third quarter on Thursday ( 7/11 ) , followed by the payroll data (payroll ) October nonfarm by the Labor Department on Friday ( 8/11 ) .

Analysts anticipate that the data are likely to show the U.S. economy slowed in the third quarter .

Last week , the U.S. central bank decided to maintain a loose monetary policy unchanged to support economic growth and job creation . Fed officials agreed to wait for more evidence that the economic upturn will be sustained before making any adjustments . U.S. benchmark oil prices slumped on Tuesday (Wednesday morning GMT ) to a five-month low , as traders anticipated a major report will show U.S. inventories continue to overflow .

Main contract , light sweet crude or West Texas Intermediate ( WTI ) for delivery in December at the New York Mercantile Exchange , fell 1.25 dollars to close at 93.37 U.S. dollars per barrel , the lowest level since early June , AFP and Xinhua reported .

In London trade , Brent North Sea crude for December delivery was down 90 cents from Monday's close to settle at 105.33 dollars a barrel .

Fawad Razaqzada analyst at GFT trading company said the market was hit by " concerns over rising U.S. crude inventories and global demand outlook ( a ) weak . "

" Underlining demand concerns , the European Commission today cut its 2014 forecast for economic growth in the euro zone and raised its estimate for unemployment , " he added .

Oil prices came under pressure as U.S. crude stockpiles have risen in the last six weeks , primarily due to increased domestic production .

Markets are waiting for a weekly report on Wednesday on U.S. oil inventories from the U.S. Department of Energy ( DoE ) , estimate the rise in crude inventories for the seventh consecutive week .

" The U.S. stock market is waiting for tomorrow ( Wednesday ) and the ongoing buildup there is no reason to think that it will change this time , " said Robert Yawger of Mizuho Securities .

DoE is expected to report in U.S. crude inventories rose by 1.9 million barrels in the week ending 1 November according to analysts polled by Dow Jones Newswires .

Crude oil inventories in the United States have risen over the last six weeks , raising concerns about oversupply in the biggest economy and oil consumer in the world was .

U.S. crude oil supplies rose 4.1 million barrels to 383.9 million barrels for the week ending October 25 , due to a sharp rise in the production of shale oil . Traders expect further rise of 2.5 million barrels for the week ending 1 November

Libya's oil production levels also remain in focus , analysts said .

Libyan light crude oil used by refiners in Europe and sharp production cuts forced by the protests in a few months has pushed up prices for alternatives such as Brent .

Investors are also closely watching key economic data due out this week for clues about planned future Federal Reserve monetary policy .

Commerce Department will release gross domestic product figures third quarter on Thursday ( 7/11 ) , followed by the payroll data (payroll ) October nonfarm by the Labor Department on Friday ( 8/11 ) .

Analysts anticipate that the data are likely to show the U.S. economy slowed in the third quarter .

Last week , the U.S. central bank decided to maintain a loose monetary policy unchanged to support economic growth and job creation . Fed officials agreed to wait for more evidence that the economic upturn will be sustained before making any adjustments . ( Ant )