30 April 2014, News Wires – Brent slipped towards $108.50 per barrel on Wednesday, dragged down by a near $1 drop in US crude as inventories in the US were expected to hit the highest level on record.
A Reuters poll of analysts revealed expectations that US crude stocks rose 2.4 million barrels to 400 million barrels last week, the highest level since the US Energy Information Administration (EIA) started collecting data in 1982.
The poll was taken ahead of the EIA weekly inventory data due out later on Wednesday.
Brent crude for June delivery fell $0.27 to $108.71 per barrel by Wednesday after climbing $0.86 to $108.98 in the previous session.
June US crude dropped $0.80 to $100.48 per barrel after falling by as much as $0.93 in early trade on Wednesday.
This reversed Tuesday’s gain when US crude rose $0.44 to close at $101.28 per barrel.
The fall in Brent was “100%” due to the drop in U.S. crude, Barratt Bulletin chief executive Jonathan Barratt told Reuters.
And while Libyan exports are starting to come back, the supply situation from the North African nation is far from clear, he said.
“I think Brent will come under pressure from Libya,” Barratt said, but added Libyan oil exports would have to be sustained without disruptions before there was an impact on Brent prices.