RTRS: Oil falls as US inventories, weak demand weighs
NEW YORK (Reuters) - Oil prices fell on Friday, touching the lowest level in a month as bulging fuel inventories in the United States stirred demand concerns.
U.S. crude futures traded down 60 cents to $76.34 a barrel by 11:23 a.m. EST, after earlier touching $75.57 a barrel, the lowest level since mid-October.
Brent crude futures fell 43 cents to $75.59 a barrel.
Crude's losses extended a 3 percent drop on Thursday after the U.S. Energy Information Administration (EIA) reported crude and product stocks in the world's largest energy consumer rose more than expected last week.
The 1.8 million barrel rise in U.S. crude oil stocks and 2.5 million barrel rise in gasoline stocks came as data showed demand still trailing year ago levels.
Fuel consumption in the United States and other large industrialized countries was battered by the economic crisis, pushing crude prices off record highs near $150 a barrel in July 2008 to below $33 a barrel in December.
Prices have recovered since then as markets look toward an economic rebound that could boost oil demand.
"Crude futures are down, still hurt by Thursday's dismal inventory report showing petroleum inventories rose, with demand down, even though refinery rates were down a lot," said Gene McGillian, analyst for Tradition Energy.
"There's a battle in the oil markets between bearish fundamentals and expectations on when the economy turnaround will come."
U.S. consumer sentiment fell in early November to the weakest in three months amid grim expectations for job and income prospects, a survey showed on Friday.
Energy experts say current fundamentals may not support prices.
"Today the price of oil may be $70 or $80, tomorrow it may even be $90," Christophe de Margerie, CEO of French oil major Total (TOTF.PA).
"If you look at supply and demand, the price should be lower."
Exxon Mobil Corp (XOM.N) Chief Executive Rex Tillerson said winter heating demand alone was unlikely to significantly reduce the global fuel inventory glut.
The International Energy Agency, adviser to 28 industrialized nations, said on Thursday the world would use more oil in the fourth quarter of this year than in 2008 due to a rebound in energy demand in Asia.
