Oil falls below $89 amid ample supplies

Associated Press Modified: November 20, 2012 at 7:15 am •  Published: November 20, 2012
Advertisement
;

"The oil producing countries in the surrounding area could be dragged into the conflict were it to further escalate, which justifies a risk premium on the oil price," said a report from Commerzbank in Frankfurt.

Investors will also be monitoring fresh information on U.S. stockpiles of crude and refined products.

Data for the week ending Nov. 16 is expected to show builds of 1 million barrels in crude oil stocks and 1.25 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

The American Petroleum Institute will release its report on oil stocks later Tuesday, while the report from the Energy Department's Energy Information Administration — the market benchmark — will be out on Wednesday.

Brent crude, which is used to price international varieties of oil, was down 21 cents to $111.49 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the New York Mercantile Exchange:

— Wholesale gasoline was down 1.65 cents to $2.7380 a gallon.

— Heating oil added 0.34 cent to $3.0785 a gallon.

— Natural gas gained 4.3 cents to $3.762 per 1,000 cubic feet.

___

Pamela Sampson in Bangkok contributed to this report.