LONDON: New York's main oil contract hit fresh three-month lows Tuesday on rising US crude stocks and after weak jobs data, while Brent climbed due to Middle East supply fears, analysts said.
New York's main contract, West Texas Intermediate (WTI) for delivery in November, hit $98.20 a barrel the lowest point since the start of July.
It later stood at $98.66, down 56 cents compared with Monday's close.
Brent North Sea crude for December delivery gained 55 cents to stand at $110.19 a barrel in late London deals. Brent is the main reference for the pricing of Middle East crude.
"The rising premium of Brent over WTI is mainly due to the increasing production of oil in North America and lingering concerns over supply disruptions in the Middle East" amid unrest in Syria and tensions over Iran, said Fawad Razaqzada, analyst at traders GFT Markets.
On Monday, the US Department of Energy (DoE) said American crude inventories increased by 4.0 million barrels in the week ended October 11, far higher than the 1.7 million increase forecast by analysts.
A rise in stockpiles indicate weak demand in the world's biggest oil consuming nation, putting downward pressure on prices.
On Tuesday, a US Labor Department report showed the country added 148,000 jobs in September, well below the 183,000 expected by analysts.
But the report, delayed owing to the recent government shutdown, showed the unemployment rate fell to 7.2 percent from 7.3 percent a month earlier.
Many analysts said the jobs report suggested that the Federal Reserve was unlikely to reduce its stimulus programme for the economy in the near future.
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