Oil prices fall on supply worries, rising demand

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Oil prices fall on supply worries, rising demand

SINGAPORE Oil prices fell in early Asian trade on Thursday, as traders anticipated more supply of crude entering the market, along with weaker demand.

Brent crude futures fell 53 cents, or 0.5 per cent, to $96.87 a barrel by 0005 GMT, while U.S. West Texas Intermediate crude futures fell 61 cents, or 0.7 per cent, to $91.32.

The U.S. crude oil stock increased by 5.5 million barrels in the last week, more than the expected increase of 73,000 barrels, according to the U.S. Energy Information Administration.

In the last week, gasoline product supplied increased to 9.1 million barrels per day, but that figure shows demand down 6 per cent over the past four weeks compared to the year-ago period.

The flow on the Russia-to-Europe Druzhba pipeline resumed earlier this week.

The Russian state oil pipeline monopoly Transneft restarted oil flows via the southern leg of the Druzhba oil pipeline. Ukraine had suspended Russian oil pipeline flows to parts of central Europe since early this month because Western sanctions prevented it from receiving transit fees from Moscow, Transneft said on Tuesday.

Later today, the International Energy Agency IEA and the Organization of the Petroleum Exporting Countries OPEC are expected to release monthly oil reports.