Oil prices edged lower in Asia today under pressure from a supply glut and a strengthening US dollar, analysts said.
US benchmark West Texas Intermediate for October delivery fell 20 cents to $92.87, while Brent crude for November eased 15 cents to $97.55 in mid-morning trade.
Singapore’s United Overseas Bank said a “stronger US dollar and higher US crude commercial inventories weighed on prices’’.
The weekly US crude stockpiles report released on Wednesday showed a surge of 3.7 million barrels instead of the 1.2 million barrel decline expected by the market.
Oil prices also took a hit due to a strong US dollar.
The greenback bought 109.20 yen in Asian trade today, compared with 108.68 yen in New York on Thursday, supported by the US Federal Reserve’s decision to stick to its timetable and only raise short-term interest rates next year.
A stronger US dollar adds downward pressure on oil, which is traded in the US currency, making it more costly for buyers using weaker currencies.
Markets also kept an eye on the Scottish independence referendum results due later Friday, but there was no clear path for crude prices from either possible result, though it would put in play Scotland’s rights to the North Sea oil wealth.