Crude prices drop on geopolitics, inventories anticipation

Crude oil prices were lower Tuesday after tensions eased along the Turkey/Iraq border and ahead of Wednesday’s US inventories data.

Turkish troops were reported to have withdrawn from in incursion into northern Iraq after striking at Kurdish rebels.

West Texas Intermediate crude for January delivery dropped 33 cents to $90.30 per barrel on the New York Mercantile Exchange shortly before the close of floor trade, while Brent crude was down $1.31 to $89.98 per barrel on the ICE Futures Europe exchange in London.

Nymex January gasoline was down 4 cents to $2.30 per gallon while February heating oil was 1 cent cheaper at $2.58 per gallon and March natural gas added 4 cents to $7.25 per million British thermal units.

US crude oil inventories are expected to be 1.5 million barrels lower overall when the US Energy Information Administration reports on last week’s stockpiles, but some analysts think that inventories at the key depot in Cushing, Oklahoma will be higher again.

Distillates stockpiles are expected to have dropped last week, while gasoline inventories are anticipated to be higher.