Oil drops on US inventory data

21st October 2015, Comments 0 comments

Oil prices fell on Wednesday on fresh indications of weaker demand in top global crude consuming nation the United States.

US benchmark West Texas Intermediate for delivery in December lost 97 cents to $45.32 a barrel compared with Tuesday's close.

Brent North Sea crude for December delivery was down 65 cents at $48.06 a barrel in London late afternoon deals.

The US government's Energy Information Administration said Wednesday that American commercial oil supplies jumped eight million barrels in the week to October 16.

That was more than double market expectations for a gain of 3.750 million barrels, according to analysts polled by Bloomberg News, indicating weaker demand for crude.

Prices remained weighed down by a stubborn global supply glut and weak demand in the faltering world economy.

The market is also being dampened by an expected return to the market of Iranian oil as the United States and Europe prepare to lift trade sanctions that have hobbled the Islamic Republic's economy.

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© 2015 AFP

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