West Texas Intermediate headed for its biggest monthly loss since November on signs that crude inventories increased from an 83-year high in the U.S., the world’s biggest oil consumer. Brent slid as President Putin cautioned against further sanctions on Russia over Ukraine.
Futures dropped as much as 1.3 percent in New York, declining for the first time in three days. Crude stockpiles probably increased by 2.2 million barrels to 399.9 million last week, according to a Bloomberg News survey before government data today. Supplies rose by 3 million, an industry report showed yesterday. Brent is poised for a rebound in April as sanctions on Russia were strengthened over the Ukraine crisis and gunmen opened fire at Libya’s parliament.
“The market is still oversupplied and that is weighing on WTI,” Andy Sommer, an analyst at Axpo Trading AG in Dietikon, Switzerland, said by phone. “Shale production is still rising fairly sharply and U.S. demand has slipped.”