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Crude hits 4-1/2 month lows over U.S. supply concerns

Published 11/05/2013, 12:49 PM
Updated 11/05/2013, 12:50 PM
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Investing.com - Oil prices dropped to levels not seen since June on Tuesday amid concerns that weekly U.S. supply data due out on Wednesday will reveal the world's largest economy is awash in crude.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD93.26 a barrel during U.S. trading, down 1.44%.

The commodity hit a session low of USD93.24 and a high of USD94.41. The December contract settled up 0.01% at USD94.62 a barrel on Monday.

Oil futures were likely to find support at USD92.73 a barrel, the low from June 24 and resistance at USD95.10 a barrel, Monday's high.

Oil traders looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.

The American Petroleum Institute, an industry group, will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.8 million barrels, which sent prices falling on Tuesday.

Meanwhile, a stronger dollar also softened oil prices.

The Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 55.4 in October from 54.4 in September, beating forecasts for a 54.0 reading, which gave the dollar some support.

A stronger greenback makes oil a less attractively priced asset on dollar-denominated exchanges.

Meanwhile on the ICE Futures Exchange, Brent oil futures for December delivery were down 0.79% at USD105.40 a barrel, up USD12.14 from its U.S. counterpart.









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