Oil prices continue to fall as supplies grow
July 11, 2014, 12:05 am TWN
Oil prices extended losses Thursday as the outlook for supply remained robust.
Benchmark U.S. crude for August delivery was down 36 cents to US$101.93 a barrel at 0940 GMT in electronic trading on the New York Mercantile Exchange. The contract fell US$1.11 to close at US$102.29 on Wednesday.
Brent crude, a benchmark for international oils, inched down 1 cent to US$108.46 on the ICE exchange in London.
Oil has been falling steadily for more than a week partly because worries about disruptions of the oil supply from Iraq have subsided and Libyan oil is returning to the global market. Oil hit a 10-month closing high of US$107.26 on June 20.
On Wednesday, government data showed that a fall in U.S. oil supply was smaller than expected. The U.S. Energy Department reported that U.S. crude oil supplies fell by 2.4 million barrels last week. Analysts expected a 3 million barrel decline. The department had revised up its estimate for U.S. crude production for this year and next year.
In other energy futures trading:
— Wholesale gasoline inched up 0.3 cent to US$2.935 a gallon.
— Natural gas rose 0.3 cent to US$4.173 per 1,000 cubic feet.
— Heating oil added 0.7 cent to US$2.872 a gallon.