Current Oil Prices Fell Slightly with Prediction of US Crude Supply Rise

The prices of oil fell with analysts’ prediction of an inventory rise of U.S. crude, highlighting low fuel demand.

The U.S. benchmark for delivery in February moved 4 cents lower to a crude price per barrel of $93.15 during midday trading, Bangkok time on the NYMEX. Yesterday, the contract gained 10 cents to end the trading day at $93.19 per barrel.

Analysts anticipate the report of the U.S. Energy Information Administration (EIA) and the American Petroleum Institute (API) to show¬† a 1.5 million-barrel supply rise in crude oil during the week ending on January 4, said Platts, McGraw-Hill’s energy information branch.

Moreover, excitement for oil has been controlled by the recession in Europe and the only-slight U.S. economic improvement.

Energy Analyst Ken Hasegawa of Tokyo’s Newedge brokerage said that the oil industry does not have a clear direction. There is still plenty of uncertainty regarding the situation in Europe and the recovery of the economy of the United States.

The supplies of crude dropped 3 percent, or 11.1 million barrels, during the week that ended on December 28, according to the recent report of the EIA. Analysts only expected a million-barrel drop.

The supply report of the API and EIA will be released very soon.

Meanwhile, the current crude price of Brent stays the same, at $111.40 per barrel on London’s ICE Futures Exchange.

Elsewhere in the energy markets, each gallon of wholesale gasoline gained a cent to $2.787. Heating oil moved 0.3 cent higher to $3.035 per gallon. And natural gas shed a cent to $3.256 per thousand cubic feet.

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