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Traders work on the floor of the New York Mercantile Exchange, September 30, 2008. REUTERS/Lucas Jackson

NYMEX – U.S. crude falls on likely stocks build, storage woes

SINGAPORE – U.S. crude futures slipped in early Asian trade on Tuesday, extending losses into a third week as U.S. inventory data was expected to show an increase in crude stocks for a fifth consecutive week.

The fall came as U.S. and European storage utilization for distillates, which include diesel, neared historic highs, according to a report on Monday by Goldman Sachs, although a weaker dollar put a floor under prices.

FUNDAMENTALS

* U.S. crude for December delivery fell 9 cents to $43.89 a barrel as of 0003 GMT after it settled down 62 cents, or 1.4 percent, in the prior session.

* Brent for December delivery was up a cent at $47.55 a barrel after it settled down 45 cents, or almost 1 percent.

* U.S. commercial crude oil stockpiles likely rose for a fifth straight week, by an average of 3 million barrels to 479.6 million, in the week ended Oct. 23, a preliminary Reuters survey taken ahead of industry and official inventory data, showed on Monday.

* Oil prices are expected to show an upward correction next year, partly due to a faster-than-expected recovery in demand, the United Arab Emirates’ oil minister Suhail bin Mohammed al-Mazroui said on Monday.

* China has granted another two independent refineries – Baota Petrochemical Group and Dongying Yatong Petrochemical – licenses to import crude oil, the country’s commerce ministry said on Monday.

* The Russian air force flew 164 sorties in Syria in the last three days, striking 285 Islamic State and Jabhat al-Nusra targets including ammunition stores and arms factories, the Russian defense ministry said on Monday.

* Russian Deputy Foreign Minister Mikhail Bodganov said on Monday that delegations from the Western-backed Free Syrian Army had visited Moscow several times, Russian news agencies reported.

MARKETS NEWS

* The dollar index slipped against a basket of six major currencies in early Asian trade on Monday.

In related news, NYMEX – US crude edges higher on economic data, stock market rise.

(Reporting by Keith Wallis; Editing by Richard Pullin)

This article was from Reuters and was legally licensed through the NewsCred publisher network.