LONDON: Brent crude oil slipped towards $107 a barrel yesterday as ample supply in the Atlantic basin and weak demand in Europe and Asia outweighed worries over political tensions in Ukraine and the Middle East.
North Sea and West African physical crude markets are over supplied, traders and brokers say, with sellers discounting heavily in an effort to attract buyers such as oil refiners. September Brent was down $1.20 at $107.19 a barrel. US crude futures for September dropped 80 cents to $101.29, after ending last week 1 percent lower. North Sea crude oil cargoes for lifting are trading at deep discounts, more than $1.50 per barrel below the front futures month. Traders reported around 30 million unsold barrels of West African crude for lifting in August, and September cargoes were becoming available, further depressing the market.
REUTERS
