Oil gets cheaper ahead of second U.S. supply report this week

PanARMENIAN.Net - Oil got cheaper Wednesday, Oct 23, ahead of a second U.S. supply report this week that could show crude stockpiles continuing to rise, the Associated Press reports.

Benchmark U.S. crude for December delivery was down 66 cents at $97.65 a barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell $1.38 to $98.30 on Tuesday.

Oil is trading at its lowest since late June as ample supplies and a slowdown in U.S. hiring suggest subdued demand. Iran's pursuit of international dialogue to resolve the impasse over its nuclear ambitions has reduced the political risk premium that is factored into the price of crude.

The U.S. Energy Department will release crude stockpile figures for last week later Wednesday and a 3 million barrel increase is expected.

The supply report for the week ended Oct 11 was released Monday after being delayed five days due to the government shutdown. It showed crude supplies up by 4 million barrels.

Brent crude, the international benchmark, fell 68 cents to $109.28 a barrel on the ICE futures exchange in London.

Despite easing in Asian trading hours, Brent, the European benchmark, remained supported by concerns over a disruption to Middle East supplies.

According to AFP, an official from Libya's National Oil Corp on Tuesday said output had stabilised to around 600,000 barrels even as authorities struggle to end armed protests that cut shipments for months.

Libyan oil exports had plunged by more than 70 percent after protesters, including policemen and border guards, forced the terminals to shut over demands for back pay.