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Oil prices slip on expectations of US supply build

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(Globalpost/GlobalPost)

World oil prices fell on Tuesday as traders looked forward to another increase in US crude oil inventories, adding to concerns about lackluster demand in the world's biggest economy.

New York's main contract, West Texas Intermediate (WTI) for delivery in January, closed at $93.68 a barrel, a drop of 41 cents from Monday.

Brent North Sea crude for January slipped 12 cents to settle at $110.88 a barrel in London trade.

"There is a consensus on the market that there will be another build in the crude stocks in the US. If so, it will be the tenth week in a row," said Robert Yawger, energy specialist at Mizuho Securities USA.

According to Dow Jones Newswires, analysts expect the Department of Energy's weekly report on Wednesday to show an increase of 500,000 barrels in crude inventories for the week ending November 22.

Over the nine previous weeks the inventories grew by 32.8 million barrels to 388.5 million barrels.

"With that much crude oil in storage, it doesn't matter what the weather is," said Phil Flynn of Price Futures Group, referring to unseasonably wintry weather that is gripping parts of the country.

Traders are digesting a weekend agreement between world powers and Iran, in which the major oil producer would get modest sanctions relief in exchange for curbs on its disputed nuclear program.

"The market realizes these barrels will not be on the market anytime soon. If exports resume it won't be before several months," Yawger said.

The Islamic republic has been crippled by a series of UN and international sanctions aimed at bringing an end to its nuclear drive.

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http://www.globalpost.com/dispatch/news/afp/131126/oil-prices-slip-expectations-us-supply-build