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LONDON. – Brent crude slipped below $106 a barrel yesterday as higher Organisation of Petroleum Exporting Countries output and disappointing demand in the US outweighed tensions in the Middle East, Africa and Ukraine.
Petrol stockpiles rose in the US even though it is the peak driving season, raising concern over the outlook for demand in the world’s largest oil consumer.
Opec pumped more oil in July than in June despite concerns that unrest in Africa and the Middle East could hurt production, a Reuters survey showed.

Brent crude for September delivery fell 53c to $105,98 a barrel by 07.55 GMT.
Brent crude fell more than 5 percent in July and is on track to post its biggest monthly loss since April 2013.

US crude futures for September delivery dropped 94c to $99,33 a barrel, putting the contract on course for a 5,6 percent fall on the month, the biggest since October.
The contract hit a two-week low of $99,16 in the session after Energy Information Administration data showed that petrol and distillates stockpiles rose despite a bigger-than-expected drop for crude.

“If prices failed to rise on bullish arguments then the market sentiment is very bearish,” said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
“I would expect prices to decline.”

Crude supply from the US was increasing as exports reached 288 000 barrels per day in May, the highest since April 1999, EIA data showed.
The dollar held just below a 10-month peak against a basket of major currencies yesterday after soaring on strong US economic growth data.

A stronger greenback raises the cost of investing in oil for holders of other currencies.
Oil prices have eased after hitting multi-month highs in June because of political tensions in the Middle East, Africa and Europe.
But traders are watching how sanctions on Russia over Ukraine will affect its oil exports.

“Now that both the European Union and the US have stepped up measures to prevent some Russian companies from accessing the capital markets, this could perhaps mean disappointing oil exports from Russia,” said Gordon Kwan, head of Asia oil and gas research at Nomura in Hong Kong.
“That, together with the Gaza tensions, could be a good support for Brent prices.” – Reuters.