“Oil traded near the lowest price in a week in New York amid signs of rising supplies in the U.S. and concern that lawmakers are struggling to reach agreement on how to address the nation’s deficit.
West Texas Intermediate futures were little changed after sliding 0.6 percent yesterday. An Energy Department report today may show crude supplies rose by 350,000 barrels to 374.8 million, according to a Bloomberg News survey. U.S. Senate Majority Leader Harry Reid said yesterday he was disappointed with progress made during congressional budget talks over $607 billion in tax increases and spending cuts set to begin in January.
“The market has been kept well-supplied,” said Guy Wolf, a strategist at London-based commodities broker Marex Spectron Group Ltd. who predicts Brent crude will recover to $125 a barrel early next year. “Funds are not engaged with the market right now, partly due to potential events such as the U.S. fiscal cliff. Even though everyone assumes it will resolve itself, the question is how close to the edge do we go first?”
Crude for January delivery was at $86.90 a barrel, down 28 cents, in electronic trading on theNew York Mercantile Exchange at 10:19 a.m. London time. The contract decreased 56 cents yesterday to $87.18, the lowest since Nov. 20. Prices are down 12 percent this year.
Brent for January settlement slid 26 cents to $109.59 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $22.69 to WTI, compared with $22.69 yesterday.”
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