GO
Loading...

NYMEX-Crude falls below $98 on stock build, Libya export hopes

Tuesday, 29 Oct 2013 | 8:36 PM ET

TOKYO, Oct 30 (Reuters) - U.S. crude futures fell under $98 a barrel in Asian trading on Wednesday, as a higher-than-expected weekly stock build combined with declining worries about protracted disruptions to petroleum exports from OPEC member Libya.

FUNDAMENTALS

* NYMEX crude for December delivery was down 57 cents at $97.63 a barrel by 0020 GMT, after settling 48 cents lower on Tuesday.

* London Brent crude for December delivery was down 31 cents at $108.70 a barrel, after finishing 60 cents lower on Tuesday.

* Crude stocks at the Cushing, Oklahoma, delivery hub rose by 5.9 million barrels in the week Oct. 25, compared with analysts' expectations for an increase of 2.2 million barrels, data from industry group the American Petroleum Institute showed on Tuesday.

The U.S. Energy Information Administration will release its own oil inventories statistics later on Wednesday.

* Libya's crude oil exports have slumped to around 90,000 barrels per day, less than 10 percent of capacity, as protests have halted operations at ports and fields, but Libya's prime minister said on Monday exports from the eastern port of Hariga with a capacity of 110,000 bpd would resume after one week.

* Comments from the Federal Reserve's two-day policy-making meeting are expected later in the day, with the U.S. central bank expected to keep its economic stimulus as it waits to see more evidence of how the recent budget battle hurt the U.S. economy.

MARKETS NEWS

* The dollar traded at one-week highs against a basket of major currencies early in Asia on Wednesday as investors further trimmed bearish positions ahead of the outcome of the Fed policy meeting.

* The Dow and S&P 500 ended at record highs on Tuesday after economic data supported views that the U.S. central bank would keep its stimulus intact for several months.

* The 19-commodity Thomson Reuters/CoreCommodity CRB index finished down nearly half a percentage point on Tuesday, after raw sugar fell the most in a month on selloff fears and natural gas tumbled on mild weather forecasts in key U.S. regions.

DATA/EVENTS

* The following data is expected on Wednesday:

0855 Germany Unemployment rate

1000 Euro zone Business climate

1000 Euro zone Economic sentiment

1215 U.S. ADP employment report

1230 U.S. CPI

1300 Germany CPI

1430 U.S. EIA weekly oil stocks

1800 Federal Reserve releases statement after two-day

monetary policy meeting

(Reporting by James Topham; Editing by Ed Davies)