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Crude prices drop as U.S. supply report disappoints

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Investing.com - " Oil prices fell on Wednesday after official data revealed U.S. supplies are on the rise, while a soft September jobs report released a day earlier also pushed prices lower.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD97.24 a barrel during U.S. trading, down 1.08%.

The commodity hit a session low of USD96.18 and a high of USD98.28. The December contract settled down 1.38% at USD98.30 a barrel on Tuesday.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 5.2 million barrels in the week ended Oct. 18, above expectations for an increase of 3 million barrels, stoking concerns the country is awash in crude.

Total U.S. crude oil inventories stood at 379.8 million barrels, the highest level since June.

The report also showed that total motor gasoline inventories declined by 1.8 million barrels, compared to expectations for a drop of 250,000 barrels.

Oil prices also continued to come under pressures after the Department of Labor said Tuesday that the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.

The previous month's figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.

July's figure was revised down to 89,000 from 104,000.

The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August due in part to more people dropping out of the labor force.

Meanwhile on the ICE Futures Exchange, Brent oil futures for November delivery were down 1.37% at USD108.47 a barrel, up USD11.23 from its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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