Share

World oil prices drop before US data

London - Oil prices slid on Wednesday as traders awaited employment and energy inventories data in the United States, which is the world's top crude consuming nation.

Brent North Sea crude for delivery in October dropped 27 cents to $113.75 in late morning deals.

New York's main contract, West Texas Intermediate (WTI) for October shed $1.15 to $87.75 a barrel.

Later on Wednesday, at 14:30 GMT, the US Department of Energy (DoE) will publish its latest snapshot of American crude oil inventories for the week ending August 26.

"Everyone's waiting for the reports later today. The market is very much focusing on the stats," said Thina Saltvedt, senior oil market analyst at Nordea Bank Norge.

Crude stockpiles are expected to climb by 200 000 barrels, according to analysts polled by Dow Jones Newswires. Gasoline or petrol reserves are forecast to drop by one million barrels.

Distillates, which include diesel and heating fuel, are seen rising by 700 000 barrels.

Ahead of the DoE report, traders will absorb the US ADP employment report which could give an early indication of this Friday's crucial non-farm payrolls figures.

"In the current market environment it does not take much to tip the balance...Uncertainty is high, in particular regarding whether the US is heading towards another recession or not," said SEB Commodity Research in a note.

On Tuesday, the oil market was dented after US industry body the American Petroleum Institute (API) published data that showed a steep rise in crude inventories.

The API forecast on Tuesday a that crude stockpiles had jumped 5.1 million barrels last week.

Analysts added that geopolitical fears in the oil-producing Arab region sparked by Israel and Iran's naval posturing in the Red Sea was providing some support to prices.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.5%
Rand - Pound
24.02
-0.5%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.6%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,209.06
+0.7%
Silver
24.59
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,122
+0.7%
All Share
74,310
+0.5%
Resource 10
56,908
+2.2%
Industrial 25
103,615
+0.3%
Financial 15
16,488
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders