LONDON: Oil prices diverged on Wednesday as investors bet on a further increase in US inventories, indicating weak demand in the world's top crude consumer, and amid tight Libyan supply concerns.
New York's main contract, West Texas Intermediate (WTI) for delivery in December, dropped 92 cents to $97.28 a barrel, as traders awaited also the outcome of the US Federal Reserve's latest monetary policy meeting.
Brent North Sea crude for December rose 14 cents to stand at $109.15 a barrel in London afternoon trading.
"Plentiful supply in the US, with expectations of a further increase in crude stockpiles, is putting pressure on (New York crude) prices," Kenny Kan, market analyst at CMC Markets, told AFP.
Dealers are expecting the US Department of Energy (DoE) weekly inventory report due out Wednesday to show a rise of more than two million barrels in the week to October 25, said Singapore-based Kan.
US oil prices hit near four-month low points last week following DoE reports indicating a bulge in stockpiles. A rise indicate weak demand in the world's biggest economy and oil consuming nation.
Brent crude meanwhile won support from supply concerns, analysts said.
Production in Libya, an OPEC member, has been disrupted for months after labour unrest forced terminals to shut, slashing output to below 100,000 barrels per day. Before the shutdowns, Libya was producing between 1.5 million and 1.6 million barrels daily.
Production has increased in recent weeks, but an uptick in protests has raised concerns about exports owing to near-daily attacks and bombings that some fear could lead to civil war.
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