Oil prices were lower in Asia Wednesday as caution set into the market ahead of a US crude inventory report, analysts said.
New York’s main contract, West Texas Intermediate for delivery in September, was down 24 cents at $106.59 a barrel in mid-morning trade, and Brent North Sea crude for September shed 42 cents to $109.40.
“There is not much movement in the market ahead of the US crude stockpiles data,” Kelly Teoh, market strategist at IG Markets in Singapore, told AFP.
The US Energy Information Administration (EIA) is set to publish later Wednesday its weekly commercial petroleum inventories report, an indicator of the strength of demand in the economy.
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Analysts surveyed by Dow Jones Newswires expected the data to show stocks fell by 1.5 million barrels in the week ended August 9, suggesting firmer demand.
Meanwhile, investors are also keeping a close watch on developments in crude producer Libya, after fresh oil supply disruptions there this week.
Libyan oil exports plunged by more than 70 percent at the end of July after protesters, including policemen and border guards, forced terminals to shut over demands for back pay.
Production and exports appeared to be resuming days later, but the strikes returned this week to tie up the terminals.
Source: Reuters
