West Texas Intermediate extended its rout from the lowest price in 22 months after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009. Brent slid to a four-year low in London.
Futures dropped as much as 1.5 percent in New York, the fifth decline in six days. Oil consumption will increase by about 650,000 barrels a day this year, 250,000 below the previous estimate, the Paris-based agency said in its monthly market report. U.S. crude stockpiles probably expanded by 2.5 million barrels to a two-month high last week, according to a Bloomberg News survey before a report from the Energy Information Administration on Oct. 16.
Oil futures have collapsed into bear markets as shale supplies boost U.S. output to the most in almost 30 years and global demand weakens. The biggest producers in the Organization of Petroleum Exporting Countries are responding by cutting prices, sparking speculation that they will compete for market share rather than reduce supply. Saudi Arabia won’t alter its supplies much between now and the end of the year, a person familiar with its oil policy said on Oct. 3.
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