Oil prices fall back

13th June 2013, Comments 0 comments

Global oil prices dipped on Thursday after a surprise uptick in US crude stockpiles, but losses were tempered by growing concerns over turmoil in Turkey, analysts said.

Brent North Sea crude for delivery in July dropped 17 cents to stand at $103.32 a barrel in midday London deals.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for July, fell 32 cents to $95.56 a barrel.

"Many were expecting a seasonal drawdown on stockpiles, with the US driving season well underway, but that has not been the case," David Lennox, resource analyst at Fat Prophets in Sydney, told AFP.

The US Energy Information Administration on Wednesday reported that US crude inventories rose 2.5 million barrels in the week ending June 7, instead of the decline of 400,000 barrels expected by analysts polled by Dow Jones Newswires.

The data indicated weaker demand in the world's top crude oil consumer during the summer, when Americans traditionally take to the roads for holidays.

However, fears among investors about nationwide protests in Turkey are capping losses, Lennox said.

"The market is closely watching the situation in Turkey and whether it could lead to supply shocks elsewhere in the Middle East," he said.

On Thursday, Turkey urged thousands of protesters to evacuate an Istanbul park, saying it might hold a referendum on a controversial development project there in a bid to end nearly two weeks of anti-government unrest.

Police fired tear gas and water cannon to disperse demonstrators in the capital Ankara in the early hours while the mood was subdued in Istanbul's Taksim Square, which has witnessed nights of running battles.

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© 2013 AFP

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