Crude prices fall ahead of supplies data

Crude prices dropped Tuesday as the market was awaiting U.S. crude inventories data due to be released Wednesday.

The Energy Information Administration is scheduled to report the U.S. crude supplies data for the week ended Aug. 1. Traders expected that the U.S. refineries would have operated at a lower level in the past week due to reduced demand. A Kansas refinery, which uses crude from Cushing, Oklahoma oil-trading hub, was closed last week after a fire and may remain idle for four weeks.

U.S. peak summer driving season typically starts on the Memorial Day, which falls on May 26 this year, through to the Labor Day on Sept. 1. Analysts believe the U.S. fuel demand outlook is weak in this summer despite strong economy data.

On the economic front, the Institute for Supply Management said that economic activity in the U.S. non-manufacturing sector expanded at the fastest pace since December 2005, with the non- manufacturing index registering 58.7 in July from 56 the prior month.

Additionally, new orders for manufactured goods in June advanced 1.1 percent in June, up in four of the past five months, reported the U.S. Commerce Department, surpassing market consensus.

Light, sweet crude for September delivery edged down 91 cents to settle at 97.38 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery lost 80 cents to close at 104.61 dollars a barrel.