Crude oil prices dip with Middle East supply on the rise

Crude oil prices dip with Middle East supply on the rise

25 September 2014, 15:41
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On Thursday crude oil futures slid lower, after rising to a four-day high caused by a decline in U.S. stockpiles, as wide supply from the Middle East continued to weigh.

On the New York Mercantile Exchange, crude oil for delivery in November traded at $92.60 a barrel during European late morning trade, down 0.21%. Prices gained 1.35% on Wednesday to settle at $92.80.

Futures were likely to find support at $91.12 a barrel, Wednesday's low and resistance at $94.01, the high from September 17.

Oil prices had rallied on Wednesday, after data showed that U.S. crude stockpiles plunged unexpectedly last week.

In a report, the Energy Information Administration said that crude inventories dropped 4.3 million barrels in the week ending September 19, confounding expectations of an increase of 386,000 barrels.

But gains were limited as Saudi Arabia, the world's largest oil exporter, said it pumped 9.597 million barrels of oil per day in August.

Although that was down by 408,000 bpd from around 10 million bpd in July, the amount of crude supplied to the market reportedly rose to 9.688 million bpd in August.

Markets shrugged off potential supply concerns after U.S.-led air strikes targeted Islamic State-controlled oil refineries in eastern Syria this week.

On the ICE Futures Exchange elsewhere Brent oil for November slipped 0.36% to trade at $96.60 a barrel, with the spread between the Brent and crude contracts standing at $4 a barrel.

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