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Oil prices slip before US inventories report

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(Globalpost/GlobalPost)

Global oil prices slid on Wednesday as investors awaited the latest weekly snapshot of US crude inventories, looking for clues about demand in the world's biggest crude consumer, analysts said.

Brent North Sea crude for delivery in August dipped nine cents to stand at $101.17 a barrel in London late morning deals.

New York's main contract, West Texas Intermediate light sweet crude for August, shed 48 cents at $94.84 a barrel.

Crude futures had risen on Tuesday as positive US economic data underpinned hopes for stronger growth in the world's largest economy.

"There's hardly been any movement and trading seems to be going sideways ahead of the US stockpiles report later today," Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.

Lee Chen Hoay, an investment analyst at Phillip Futures in Singapore, said Brent crude would continue to be supported above the $100 threshold in the short term.

Wednesday's weekly data from the US Energy Information Administration (EIA) is expected to show domestic inventories fell 1.7 million barrels for the week ended June 21, according to a Dow Jones Newswires survey of analysts.

Gasoline or petrol demand traditionally surges in the summer season, when Americans take to the roads for their holidays.

"For today's trading session, investors and traders will pay close attention to official EIA weekly inventory numbers," added Sucden analyst Kash Kamal in London.

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http://www.globalpost.com/dispatch/news/afp/130626/oil-prices-slip-us-inventories-report