Supply surplus in USA impacts oil prices

06-Nov-13

Global oil prices varied on Tuesday, with New York crude being weighed down by a US stockpiles glut, and Brent crude rising marginally amid support from Libyan supply disruptions, as per AFP. New York's main contract West Texas Intermediate (WTI) for delivery in December dipped to US$94.3 a barrel, while Brent North Sea crude for December inched up to US$106.3 a barrel in late morning deals. The market awaits release of oil stockpile figures from USA, and continues to be listless. The minimal movement could be due to investors staying on the sidelines before the release of the weekly EIA report which would give them more directions relating to the US stockpiles. US crude inventories have climbed for the past six weeks, to about 28 million barrels, raising concerns about oversupply in the world's largest economy and top crude consumer. WTI is trading below the $95 threshold after falling for four consecutive sessions last week under pressure from the buildup in crude stockpiles, before rising slightly on Monday. Libyan oil production levels also remain in focus as talks between Libyan authorities and protesters blockading oil terminals have reached a deadlock after three months, prolonging a crisis that has cost the increasingly volatile country an estimated US$13 bln. The protests have caused an 80-percent drop in production in a country that is almost entirely dependent on oil and gas for its foreign exchange earnings.