BD:Brent edges down towards $106 as U.S. crude stocks seen rising
Brent crude futures dropped towards 106 dollars per barrel on Tuesday on expectations of a large increase in U.S. oil inventories.
Investors eyed possible economic reforms to be announced by Chinese leaders later in the day.
While unsuccessful talks between Iran and world powers at the weekend pulled Brent away from a four-month low hit last week, a strengthening dollar and an expected build in U.S. crude stockpiles weighed on prices.
Brent contract for December delivery was 17 cents lower at 106.23 dollars per barrel at 0736 GMT.
U.S. crude was down 25 cents at 94.89 dollars per barrel.
U.S. crude oil stockpiles were seen rising by 1.6 million barrels last week, according to a preliminary poll of Reuters analysts.
But expectations of higher refinery runs headed into the heating season helped limit a steeper fall in prices.
“Looking at the economic statistics in the U.S., demand should be increasing,” said Yusuke Seta, commodity sales manager at Newedge in Tokyo.
“We should see a drawdown in stocks in the coming weeks, as refiners increase runs ahead of the peak winter season.”
The U.S. oil inventory data reports this week will be delayed by a day due to the Veterans Day holiday on Monday.
Industry group, the American Petroleum Institute, will release its report on Wednesday and the U.S. Energy Information Administration will publish its data on Thursday.
A strengthening U.S. dollar also weighed on oil prices.
Following unsuccessful talks over the weekend, investors will also be watching for the next round of talks between Iran and world powers due on November 20.
U.S. Secretary of State John Kerry said he hoped an agreement would be signed within months, while London and Tehran revived diplomatic ties.
