Crude price hovers near $101 as U.S. supplies rise

PanARMENIAN.Net - Oil prices clawed back a little ground Thursday, Oct 10, a day after a big drop precipitated by an increase in U.S. crude inventories, the Associated Press reports.

Benchmark oil for November delivery was up 15 cents to $101.76 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract for the benchmark grade fell $1.88 to close at $101.61 on Wednesday.

The American Petroleum Institute said crude supplies rose by 2.7 million barrels to 366.5 million barrels for the week ending Oct 4. The U.S. Energy Department said supplies rose by 6.8 million barrels. The jump in stockpiles comes at a time of year when demand from oil refineries is seasonally weak.

"Supply is relatively plentiful and inventories are building up again as the summer driving season ends," said Ric Spooner, chief market analyst at CMC Markets in Sydney.

Oil prices have bounced between $101 and $104 a barrel after the U.S. government was forced to partially halt operations last week. The shutdown occurred after Congress failed to pass a bill on short-term funding for the nation past the end of the government's fiscal year on Sept 30.

Brent, the benchmark for international crudes, rose 45 cents to $109.51 a barrel on the ICE Futures exchange in London.