Oil falls ahead of US supply report

2011-07-13 16:48

New York - Oil is dropping ahead of a government report on U.S. oil demand and supply.

Benchmark crude gave up 28 cents at $97.17 per barrel in morning trading on the New York Mercantile Exchange.

Brent crude, which is used to price many foreign oil varieties, fell 13 cents to $116.81 per barrel on the ICE Futures exchange in London.

Prices dropped even though Fed Chairman Ben Bernancke said the central bank may provide more stimulus if the economy's current soft patch persists. Europe's credit crisis continues as Moody's Investors Service downgraded Ireland's bond rating to junk, and the American Petroleum Institute said US oil supplies unexpectedly rose 2.3 million barrels last week.

The Energy Information Administration reports its supply estimates later Wednesday.