Brent, WTI drop more than $1 per barrel

Crude oil prices were lower Tuesday ahead of Wednesday’s scheduled inventories report from the US Energy Information Administration, which are expected to show that crude oil stockpiles dropped last week but that gasoline and distillates inventories grew over the week.

West Texas Intermediate crude for November delivery was down $1.42 to $79.53 per barrel on the New York Mercantile Exchange, while November contracts for Brent crude fell $1.59 to $77.32 per barrel on the Intercontinental Exchange in London.

Despite the declines, an analyst at Merrill Lynch (NYSE: MER; TYO: 8675) said he believes that prices could reach $100 per barrel if the winter gets off to a cold start.

Nymex October gasoline dropped 5 cents to $2.04 per gallon, while November heating oil fell 4 cents to $2.21 per gallon and November natural gas was down 6 cents to $7.11 per million British thermal units.