Oil Prices Ease As Market Awaits U.S. Inventory Data

LONDON (AFP) - Oil prices fell slightly as traders looked ahead to the latest weekly estimates of US crude inventories amid concerns about supplies in the wake of recent hurricanes.
The price of Brent North Sea crude oil for delivery in November dropped 21 cents to 42.70 dollars per barrel in early trading.
On the New York Mercantile Exchange, light sweet crude for October delivery lost 10 cent to 46.25 dollars in pre-opening electronic deals.
New York's October contract was due to expire on the close of trading Tuesday.
"Prices are a little down," Prudential Bache trader Christopher Bellew said.
"The most important thing is going to be the (US) statistics. People are expecting quite significant stock draws in the States following disruptions to production because of the tropical storms and hurricanes."
The US Energy Department reported last week that crude oil inventories tumbled by 7.1 million barrels to 278.6 million in the week to September 10, reaching the lowest levels in nearly seven months.
"The main thing is still the feature of the stocks figures tomorrow from the US, which should show substantial draw downs on everything," GNI-Man Financial trader Robert Laughlin said.
Crude stocks should show a fall of between five and six million barrels over the past week as a result of Hurricane Ivan and after taking into account last week's disappointing inventory figures, he added.
"The market is now monitoring the progress of Tropical Storm Jeanne, as well as two other tropical storms as the Atlantic hurricane season continues," analysts at the Sucden brokerage firm said.
Oil prices eased after closing at the highest levels for almost one month a day earlier after Russia's embattled oil giant Yukos slashed deliveries to China and as traders fretted over the impact of hurricanes on US supplies.
Beijing Tuesday urged Moscow to pressure Yukos to honour its commitments to provide China with oil.
"No doubt, we hope the (Russian) company can honour its agreement with the Chinese company and will deliver its promise to export the oil," said foreign ministry spokesman Kong Quan.
"We hope Russian government authorities can also urge the company to honour the contract."
Yukos blamed the move on its inability to finance transport and other costs as a result of Russian government demands for payment of back taxes.
Meanwhile, the renewed surge in oil prices in global markets was expected to be temporary, OPEC president Purnomo Yusgiantoro said.
"The rise in oil prices is attributed to Hurricane Ivan which caused a 20 percent decrease in supply to the United States. We expect this to be temporary," Yusgiantoro said.
Speaking from Jakarta, Yusgiantoro said the Organisation of Petroleum Exporting Countries was trying to increase output to offset the surging prices.
"We hope this will have a psychological impact," he added.