West Texas Intermediate oil fell to an eight-month low after U.S. crude stockpiles fell less than analysts projected in a government report. Brent dropped to the least since April 2013.
Crude inventories fell 972,000 barrels to 358.6 million last week, the Energy Information Administration said. A 1.5 million-barrel supply drop was projected by analysts surveyed by Bloomberg. WTI and Brent were down before the report’s release on speculation that slowing economic growth will curb global fuel demand. OPEC cut forecasts for the amount of crude it will need to pump by the most in three years as U.S. output surges.
“The drop accelerated because of the smaller-than expected crude draw,” Adam Wise, who helps run a $6 billion oil and gas bond portfolio as a managing director at John Hancock in Boston, said by phone. “OPEC cut the future demand estimate for their crude earlier today. The reason for that revision was the increase in supply elsewhere, mostly in North America.”