Oil prices fall before US Inventories

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LONDON: Oil fell further as dealers awaited the latest update on crude reserves in the United States on Wednesday

At around 11:45 a.m, US benchmark West Texas Intermediate for delivery in October declined 36 cents at $45.99 a barrel.

Brent North Sea crude for October lost 54 cents to $47.83 a barrel compared with the close on Tuesday.

Prices also fell on the back of the stronger greenback, which makes dollar-denominated commodities more expensive for buyers using weaker currencies.

“In the short-term, oil is likely to find direction from the latest US oil stockpiles report and the direction of the US dollar,” said analyst Fawad Razaqzada at trading firm City Index.

Later Wednesday the US Department of Energy (DoE) will publish its report on commercial oil inventories for the week ending August 26.

The numbers are a major focus for oil traders because the United States is the world’s top crude consuming nation.

Ahead of the weekly US data, the market was roiled once again by oversupply worries after Iran’s oil minister reportedly stated that his country planned to boost output.

Source: AFP

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