LONDON--Crude-oil futures traded lower in London Wednesday as investor focus turned to U.S. oil inventory data, due later in the global day, which are expected to show a further build in already-high U.S. stockpiles.
At 0930 GMT, the front-month November Brent contract on London's ICE futures exchange is down 85 cents, or 0.8%, at $ 110.72 a barrel.
The front-month November light, sweet crude contract on the New York Mercantile Exchange is trading down 40 cents, or 0.5%, at $91.49 a barrel.
Both contracts have been trading in a very narrow range this week, with relatively light volumes, amid a dearth of fundamental news.
In a note Ritterbusch said it "continues to view the euro as the most important near-term driver of oil prices," and market participants are awaiting the European Central Bank's rate meeting Thursday and U.S. nonfarm payrolls Friday for indications of demand.
The Energy Information Administration will issue weekly U.S. oil inventory data later Wednesday. Crude stockpiles are forecast to have risen 1.7 million barrels from last week, according to the median of analysts surveyed by Dow Jones Newswires. Total U.S. crude oil storage stands at 365.2 million barrels, some 7.1% above a year ago and 12.1% above the 2006-2010 period, according to the Schork Report.
Outside the U.S., growth in stockpiles globally should be tempered by an apparent fall in oil production from the Organization of Petroleum Exporting Countries. A Dow Jones Newswires survey of industry sources and analysts showed crude-oil production from the group averaged 31.669 million barrels a day in September, down about 166,000 barrels a day from August.
The price differential between the two major benchmark contracts, known as the Brent-WTI spread, continued to narrow Wednesday, having dropped back below $20. The two have diverged amid negative supply factors for Brent, with output problems in the North Sea and an embargo shutting-in Iranian oil, and positive supply factors for WTI as a glut of crude oil continues to slosh around North America.
J.P Morgan said it is unlikely that this spread will narrow significantly, at least until mid-2013.
The ICE's gasoil contract for October delivery is down $7.75 at $972.00 a metric ton, while Nymex gasoline for November delivery is down 327 points at 2.8365 cents a gallon.
Write to Ben Winkley at ben.winkley@dowjones.com
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