US oil prices slip on supply factors

Oil prices moved down Tuesday amid forecasts that U.S. inventories continued to rise for the week ended Nov. 8. Traders expected that U.S. crude stockpile rose 1.8 million barrels for an eighth week as the Energy Information Administration, the Energy Department's statistical arm, is due to release the weekly supply report on Wednesday. The expectation for another increase of American oil supplies weighed on the market, especially the U.S. oil price. Technology and high prices are opening up new oil resources. The rising oil output from North America and Brazil reduces the role of OPEC countries in quenching the world's thirst for oil over the next decade, the International Energy Agency (IEA) said Tuesday in its annual World Energy Outlook. IEA forecast that the United States will become the largest oil producer by 2015, overtaking Russia. The pace of global oil demand growth slows steadily to an average of 1 million barrels a day per year from now to 2020, as high prices encourage efficiency and fuel switching. With a relatively light economic calendar this week, investors are awaiting Federal Reserve Vice Chairwoman Janet Yellen's confirmation testimony before the Senate Banking Committee on Thursday. Her nomination as the next Fed chief to succeed Ben Bernanke at the end of January is expected to be confirmed and investors are looking for hints of the central bank's future policy plan. Light, sweet crude for December delivery declined 2.1 U.S. dollars to settle at 93.04 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery lost 59 cents to close at 105.81 dollars a barrel.