Oil prices drop in trading before US inventory data

Crude oil prices fell back again in today’s trading session after recent strong gains and as the market awaited a report on the health of crude inventories in the US.

Light oil futures prices for January delivery, dropped 48 cents to $77.89 dollars a barrel on the NYMEX while Brent North Sea crude oil futures for January delivery shed 37 cents and is trading at $78.98 a barrel.

The US government will publish later today its latest weekly snapshot of energy inventories in the world’s biggest economy. It is expected to show that crude stockpiles rose by 800,000 barrels last week, as well as a 700,000-barrel build in petrol inventories and a 300,000-barrel drop in distillate stocks, according to analysts.

Oil prices rose by $1 yesterday as a weaker US currency saw investors move into commodities and as markets fretted about geopolitical tensions over Iran’s nuclear programme, traders said.

Tags:  crude, data, oil prices, trading, US