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NYMEX-Crude falls towards $107 as supply worries ease
September 11, 2013 / 1:17 AM / 4 years ago

NYMEX-Crude falls towards $107 as supply worries ease

TOKYO, Sept 11 (Reuters) - U.S. crude futures fell towards $107 a barrel on Wednesday, extending declines into a third day as Syria accepted a Russian proposal to give up its chemical weapons, easing concerns about the potential for U.S. military strikes against Damascus.

FUNDAMENTALS

* NYMEX crude for October delivery was down 31 cents at $107.08 a barrel by 0050 GMT, after settling $2.13 lower at $107.39 on Tuesday.

* The contract has lost about $5 since reaching a 28-month high of $112.24 late last month, with traders saying the risk premium is fading as the likelihood of U.S. strikes on Syria diminishes.

* London Brent crude for October delivery was up 5 cents at $111.30 a barrel, after ending down $2.47.

* Syria accepted the Russian proposal to give up chemical weapons and win a reprieve from U.S. military strikes but serious differences emerged between Russia and the United States that could obstruct a U.N. resolution to seal a deal.

* Analysts have warned that oil prices could spike if violence in Syria spills over into the region's main oil producing countries.

* OPEC said the world oil market was well supplied despite a plunge in Libya's output and forecast a further drop in its oil market share in 2014 due to rising supply from the U.S. and other countries outside the group.

* The U.S. Energy Information Administration (EIA) raised its 2013 world oil demand growth forecast by 20,000 barrels per day to 1.11 million bpd. In its monthly forecast, the agency cut its oil demand growth estimate for 2014 by 30,000 bpd to 1.19 million bpd.

* U.S. crude stocks fell by 2.9 million barrels last week, compared with analyst expectations for a decrease of 1.5 million barrels, data from American Petroleum Institute showed on Tuesday.

Gasoline stocks rose by 195,000 barrels, compared with analyst expectations in a Reuters poll of a 1.3 million barrel decline.

MARKETS NEWS

* U.S. stocks rose on Tuesday, with the S&P 500 index advancing for its longest stretch since early July.

* The yen was soft while the euro and risk currencies held firm on Wednesday.

DATA/EVENTS

* The following data is expected on Wednesday: (Time in GMT)

- 1100 U.S. Weekly mortgage market index

- 1400 U.S. Wholesale inventories

- 1430 U.S. EIA weekly crude stocks (Reporting by Osamu Tsukimori; Editing by Joseph Radford)

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