Oil prices go down ahead of expected increase in US reserves

After reports of expected increase in US oil reserves, oil prices went down during trading in Asia on Wednesday.

According to sources in Singapore, it is expected that the world’s largest consumer of crude oil will further increase oil reserves, which will accordingly affect prices.

“Plentiful supply in the US, with expectations of a further increase in crude stockpiles, is putting pressure on prices,” stated Kenny Kan, a market analyst in Singapore.

West Texas Intermediate (WTI), which is New York’s main contract was down to $97.63 on Wednesday morning, a decline of 57 cents. Brent North sea crude also saw a drop of 35 cents to settle at $108.66.

Only last week oil prices in the US went down considerably after the US Department of Energy (DoE) reports showed a surplus in US stockpiles. It is expected that the impending weekly report from the DoE will show the same trend and further increase.

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Posted by Ahmad Mehdi on Oct 30 2013. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.