BUSINESS

Crude oil falls near $92 a barrel on 10th straight weekly gain in US supplies

11/27/2013 03:08 EST | Updated 01/27/2014 05:59 EST
NEW YORK, N.Y. - Oil closed below US$93 a barrel on Wednesday for the first time in nearly six months as the U.S. government reported the 10th straight weekly increase in crude oil supplies.

Benchmark West Texas Intermediate crude for January delivery fell $1.38 to close at US$92.30 a barrel Wednesday on the New York Mercantile Exchange. The lowest previous close was $91.97 on May 31. Trading volumes were low ahead of Thursday's Thanksgiving holiday.

Oil has declined from around US$104 in early October due to a muted outlook for demand, high supplies and reduced tensions in the oil-rich Middle East.

The U.S. Energy Department reported that crude supplies increased by three million barrels, or 0.8 per cent, in the week ended Nov. 22. The U.S. supply of crude oil now is 391.4 million barrels, which is 4.6 per cent above year-ago levels and "well above the upper limit of the average range for this time of year," the report said.

Brent crude, a benchmark for international oils, rose 43 cents to US$111.43 a barrel on the ICE exchange in London. Brent's rise was attributed to new disruptions of oil exports from Libya, a key supplier to European markets.

In other energy futures trading on Nymex, wholesale gasoline rose one cent to US$2.70 a U.S. gallon (3.79 litres), heating oil was flat at US$3.04 a gallon and natural gas rose three cents to $3.90 per 1,000 cubic feet.

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