Brent slips towards $107

July 31, 2014 - 12:00:00 am

NEW YORK: Oil prices fell yesterday, with Brent leading the decline weakened by excess supplies in Europe and Asia, while US crude pared gains despite a larger-than-expected drop in nationwide stockpiles. The oil markets moved hesitantly in midmorning trading after the US Energy Information Administration said crude inventories fell by 3.7 million barrels last week, while gasoline and distillate stocks rose.

The bigger-than-expected draw in US crude stocks prompted a short rally, but both Brent and US crude soon turned negative, as traders and investors worried about weak demand and excess of supplies. Brent crude fell 64 cents to $107.08 a barrel by 1603 GMT, while US crude slipped 24 cents to $100.73. Traders said North Sea and West African physical crude markets were oversupplied, with sellers discounting heavily in an effort to attract buyers such as oil refiners.