El Saharara

Oil prices fell today due to weakness in the global economy and oil demand.

Brent crude futures decreased by 38 cents to $110.69 a barrel, while US crude dropped 50 cents to $88.71 a barrel, reports Reuters.

Investors continue to show concerns about looming ‘fiscal cliff’ and the possible increase of violence in the Middle East, besides keeping their fingers crossed on key parliamentary votes taking place today in Greece regarding a new set of wage and pension cuts.

With US presidential polls complete, expectations are increasing among investors that Iran’s nuclear dispute with the US and Europe will come to the fore once again, leading to supply worries and thereby impacting oil prices.

News that bombs were exploded in three districts of the Syrian capital Damascus, while another explosion damaged the main oil pipeline feeding a refinery on the western edge of the Syrian city of Homs, during a fight between rebels and army forces in the area, had a strong bearing on oil prices.

The latest data on Hurricane Sandy revealed that the superstorm’s impact on regional gasoline demand was minimal.

The Energy Information Administration of the US will release its inventory data later today, which will give further clarity on US crude oil inventories.

Image: El Saharara oil field. Photo courtesy of Javier Blas.