Crude prices fell in Asia Thursday following an unexpected surge
in US stockpiles and reports that the OPEC oil cartel is unlikely to slash
production when it meets in November.
US benchmark West Texas Intermediate for October delivery dipped
63 cents to $93.79 while Brent crude for November eased 62 cents to $98.35 in
afternoon trade.
Prices were under pressure “after the US Department of Energy
reported an unexpected increase of US crude inventories by 3.7 million barrels
instead of the market forecast for a 1.2 million decline,” said Singapore’s
United Overseas Bank (UOB) in a market commentary.
Gasoline stocks dropped 1.6 million barrels in the week to
September 12, the data showed.
UOB said oil prices also took a hit after “conflicting reports”
about the plans of the Organization of the Petroleum Exporting Countries (OPEC)
to cut its output in November due to a global supply glut and weak demand.
OPEC secretary general Abdullah El-Badri said Tuesday the cartel
would cut output in November, which helped lift prices from a two-year low.
But a Dow Jones Newswires report Wednesday, citing unnamed OPEC
delegates, said the organisation was unlikely to cut in November.
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