By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Oil futures moved lower in choppy trade on Thursday, adding to the prior day’s losses when a much bigger-than-expected rise in U.S. gasoline supplies sent prices lower.
Crude oil for January delivery CLF3 -0.40% fell 21 cents, or 0.2%, to $87.67 a barrel.
The drop added to a 62 cents loss from Wednesday when data showing gasoline supplies in the U.S. jumped by 7.9 million barrels last week, coupled with disappointing economic data, pressured prices.
Analysts at Commerzbank said in a note that the weak supply data also weighed on prices on Thursday, but that ” the oil price should not fall any further, as this is precluded above all by the ongoing risks to supply due to the geopolitical tensions in the Middle East.”
Among recent developments in the region, news reports said violence escalated in Egypt after clashes between opponents and supporters of President Mohammed Morsi resulted in several deaths.
Additionally, Israel reportedly moved ahead with plans to build settler homes in the West Bank, prompting the European Union to summon the Israeli ambassador.
“Alongside Egypt, Syria, Gaza and Iran all remain latent trouble spots, thus justifying a risk premium on the oil price,” the Commerzbank analysts said.
U.S. stock futures pointed to a slightly lower open on Wall Street. See: Stock futures flat ahead of jobless claims
Elsewhere in the energy complex, heating oil for January delivery HOF3 -0.03% rose 0.1% to $2.99 a gallon, while gasoline for the same month RBF3 +0.01% picked up 0.2% to $2.64 a gallon. January natural gas NGF13 +0.27% rose 0.6% to $3.72 per million British thermal units.
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
