Crude prices fall before US data

30th April 2014, Comments 0 comments

Oil prices fell on Wednesday awaiting official data expected to reveal another increase for US crude stockpiles that would indicate weak demand in the world's biggest economy.

New York's West Texas Intermediate (WTI) for June delivery dropped 96 cents to $100.32 a barrel.

Brent North Sea crude for June slid 65 cents to stand at $108.33 a barrel approaching midday in London.

Analysts expect data due on Wednesday to show US crude stockpiles had risen by 2.2 million barrels last week, according to a Wall Street Journal survey.

Tan Chee Tat, investment analyst at Phillip Futures, said an announcement by Libya that it will resume oil exports from the Zueitina port is also likely to push prices lower as there would be more supply in the market.

"Libya is also a cause for downside after the announcement that their second port is ready to take on their first oil tanker," Singapore-based Tan told AFP.

Libya's National Oil Corporation is set to resume exports from Zueitina after declaring an end Tuesday to a force majeure imposed on the eastern port, which was blocked by rebels for nine months.

The measure was imposed in August to clear NOC of any liability for failure to honour contracts.

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© 2014 AFP

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