Publications
Partners
London - US oil prices sank to a fresh three-month low on Wednesday, hit by weak payrolls data and expectations of rising stockpiles in the latest weekly crude inventories report.
New York's main contract, West Texas Intermediate (WTI) for delivery in December, slid to $97.10 a barrel - the lowest point since July 1. It later stood at $97.21, down $1.09 compared with Tuesday.
Brent North Sea crude for December delivery shed 64 cents to $109.34 a barrel.
Prices had also fallen on Tuesday - for the second day in a row - dented by news that the US economy added 148 000 jobs last month. That was far less than the 183 000 forecast.
Later on Wednesday, the US government's Department of Energy (DoE) will release its oil stockpiles report for the week ending October 18.
Market expectations are for a gain of 1.7 million barrels of crude, according to analysts polled by Dow Jones Newswires.
Rising stockpiles would indicate weakening demand in the United States, which is the world's biggest oil consuming nation.
"The WTI crude price dropped ... on growing anticipation the US crude stockpiles report will show another significant build," said dealer Jonathan Sudaria at trading firm Capital Spreads.
New York oil has tumbled since Monday, when a delayed DoE report showed crude inventories rose 4.0 million barrels in the previous week to October 11. That was well above expectations for a gain of 1.7 million barrels.
That report had been delayed owing to the two-week government shutdown.
"WTI remains under pressure because of expectations that the report later today will show a further increase in US stockpiles," Kenny Kan, market analyst at CMC Markets in Singapore, told AFP on Wednesday.
Despite easing price levels, Kan added that Brent, the European benchmark, remained supported by concerns over a disruption to Middle East supplies.
According to reports, an official from Libya's National Oil Corp on Tuesday said output had stabilised to around 600,000 barrels even as authorities struggle to end armed protests that cut shipments for months.
Libyan oil exports had plunged by more than 70% after protesters, including policemen and border guards, forced the terminals to shut over demands for back pay.
