West Texas Intermediate fell after a government report showed weekly crude inventories expanded for the time since June in the U.S., the world’s biggest oil consumer. Brent dropped in London.
Futures slid as much as 0.3 percent in New York. Crude stockpiles expanded by 1.4 million barrels to 367 million last week, the Energy Information Administration reported yesterday. Supplies were forecast to decline by 2.05 million, a Bloomberg News survey shows. Libya shipped the first cargo of oil from Ras Lanuf since the port was shut by rebels a year ago.
“The EIA read on inventories showed a surprise build in crude,” said Michael McCarthy, chief strategist at CMC Markets in Sydney who predicts investors may buy West Texas contracts if prices decrease to about $95.50 a barrel. “That’s a disappointing result in terms of demand in the U.S.”