Crude Falls For Second Day On Higher Stockpiles

Crude oil fell for a second day after the rise in US stockpiles signaled slowing demand in the world’s biggest oil consumer. Meanwhile, investors await the outcome of the US Federal Reserve`s monetary policy decision later in the day.

The US central bank is expected to maintain its $85-billion-a-month bond-purchasing program unchanged until April 2014, pushing the S&P 500 towards a fresh high and the Dow Jones within 50 points of an all-time record.

Adding to the downside pressures on oil prices was the stronger dollar which rose to a one week high as markets priced in expectations the US central bank will maintain its stimulus program. A stronger dollar makes the dollar-denominated commodities more expensive.

- WTI crude oil futures for December is trading around $97.74 a barrel after falling $0.46

- Brent futures for December settlement is trading around $109.00 a barrel after falling $0.01

The American Petroleum Institute showed inventories rose by 5.9 million barrels last week and gasoline stockpiles rose by 740,000 barrels. The US Energy Information Administration report might show later today that supplies climbed by 2.4 million barrels to 382.2 million, the highest level in four months.

Losses may be limited as Libya's crude oil exports fell to around 90,000 barrels per day, less than 10% of capacity, as protests halted operations at ports and fields. Yet the country’s prime minister said Monday exports from Hariga port would resume after one week.

Markets will also keeping an eye on the two-day talks between experts from Iran and six world powers that start today. The talks should prepare for the next high-level talks over Tehran’s nuclear program.

- Natural gas is trading at $3.63 per cubic feet after rising 0.03%

- Gasoline is trading at $2.6083 per cubic feet after falling 0.06%

- Heating oil (diesel) is trading at $2.9688 a gallon after rising 0.16%