Oil Falls Below $98; Analysts See Supplies Rising

NEW YORK (AP) — Oil closed at the lowest level since June Tuesday as recent data indicate that there is plenty of supply to meet current demand.

Benchmark U.S. crude for November delivery dropped $1.42, or 1.4 percent, to close at $97.80 a barrel on the New York Mercantile Exchange. That's the lowest close since June 28.

The November contract expires Tuesday. The more heavily traded December contract fell $1.38 to $98.30 a barrel.

The U.S. government said the economy added 148,000 jobs in September, a number that suggests employers held back on hiring before a 16-day partial government shutdown began Oct. 1. It wasn't a number that signaled an increased need for gasoline for the daily commute.

The jobs data came a day after the Energy Department reported a jump in U.S. crude supplies. The government said Monday that U.S. crude supplies rose by 4 million barrels in the week ended Oct. 11. The report was delayed five days due to the government shutdown.

Analysts at The Schork Report estimated that U.S. commercial crude oil stocks are at the third highest level for October since 1930 and 13 percent above the normal range over the previous decade.

Expectations are that supplies rose by another 3 million barrels last week. The Energy Department reports that figure on Wednesday.

Brent crude, the international benchmark, gained 33 cents to $109.97 on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline slipped 4 cents to $2.62 a gallon.

— Natural gas dropped 9 cents to $3.58 per 1,000 cubic feet.

— Heating oil fell 1 cent to $3.00 a gallon.

Pablo Gorondi in Budapest contributed to this report.

Copyright 2015 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Technical Sales- Decontamination/Chemical Cleaning Services
Expertise: Sales
Location: Baton Rouge, LA
Account Manager - Western US - Vapor Control & Degassing
Expertise: Sales
Location: Long Beach, CA
Sales Manager - Vapor Control/Degassing Services
Expertise: Sales
Location: Houston, TX
search for more jobs

Brent Crude Oil : $51.38/BBL 2.44%
Light Crude Oil : $50.43/BBL 2.26%
Natural Gas : $3.14/MMBtu 0.94%
Updated in last 24 hours