Brent and US oil declined for a second day today on a surprise gain in US crude stocks, weak economic data in the world's top crude importer and a possible output increase by Opec when the group meets next week.
Brent oil fell 68 cents to $113.85 a barrel, while US oil dropped 89 cents to $99.41, with Greece's debt problems continuing to provide a bearish backdrop.
Equity markets and the dollar took a knock after US jobs and factory output data added to concerns the US economy is running out of steam, leading economists to slash their forecasts for tomorrow's non-farm payrolls report.
Factory growth around the world weakened last month, surveys from Europe to Asia showed.
Opec will discuss increasing its oil output target by up to 1.5 million barrel per day (bpd) when it meets next week, a delegate told Reuters.
An output increase would be at odds with a Reuters poll predicting the Organization of the Petroleum Exporting Countries would roll over its current output agreement, untouched since a record cut in December 2008.
Iran, normally hawkish on prices, thinks preserving Opec's production ceiling is the only way to control the oil market, the semi-official Mehr news agency quoted Iran's Opec governor Mohammad Ali Khatibi as saying.
Crude was also buffeted by a jump in US crude oil stockpiles of 3.5 million barrels last week, according to the American Petroleum Industry report.
The US Energy Information Administration is set to release its estimates of petroleum stocks later today.
Pipeline disruptions had helped oil rally $2 on Tuesday, but TransCanada Corp said it expects to restart its 591,000 barrel per day (bpd) Keystone pipeline after the second spill in less than a month forced it to shut on Sunday.
The dollar strengthened in early Asian trade against a basket of currencies, but weakened against the euro.
Reuters
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