World oil prices sink before announcement of payroll and equities
August 2, 2014, 12:04 am TWN
LONDON -- World oil prices fell on Friday, coming under pressure following an equities sell-off and ahead of vital U.S. payrolls data, analysts said.
U.S. benchmark West Texas Intermediate (WTI) for September delivery slid US$1.08 to US$97.09 a barrel.
Brent crude for September was down 71 cents at US$105.31 in London early afternoon trading.
The equities sell-off has been attributed to a range of factors, including weak European inflation data, the Argentine default and softer U.S. corporate earnings.
The Dow Jones Industrial Average tumbled 1.88 percent to 16,563.30, erasing all its gains since the end of 2013.
Analysts said oil prices were also pressured by reports that a number of refineries in the U.S. Midwest were experiencing outages.
The concern is that crude inventories will build at the closely watched Cushing, Oklahoma oil-trading hub where WTI is priced, with the supply glut dampening prices.
The outages come ahead of planned maintenance in September at many refineries as the summer travel season comes to an end.
The outages are seen to have a greater impact on WTI prices. Brent crude is more exposed to the international oil market.