LONDON (AP) — The price of oil fell further on Wednesday ahead of a second U.S. supply report that could show crude stockpiles continuing to rise. Benchmark U.S. crude for December delivery was down $1.25 at $97.07 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.38 to $98.30 on Tuesday.
Oil is trading at its lowest since late June as ample supplies and a slowdown in U.S. hiring suggest subdued demand. Iran's pursuit of international dialogue to resolve the impasse over its nuclear ambitions has reduced the political risk premium that is factored into the price of crude. The U.S. Energy Department will release crude stockpile figures for last week later. with a three million barrel increase expected.
The supply report for the week ended October 11 was released Monday after being delayed five days due to the government shutdown. It showed crude supplies up by four million barrels. Brent crude, the international benchmark, fell 70 cents to $109.27 a barrel on the ICE futures exchange in London.