West Texas Intermediate crude fell to an eight-month low on surging output, ample supply and reduced fuel use in the U.S., the world’s biggest oil-consuming country.
Futures declined 0.7 percent. U.S. production climbed last week to the highest level in more than two decades, according to an Energy Information Administration report yesterday. Fuel supplies rose as usage slipped for a third week. Crude stockpiles were near a 30-year seasonal high.
“There’s been a huge increase in domestic crude-oil production,” said Adam Wise, who helps run a $6 billion oil and gas bond portfolio as a managing director at Manulife Asset Management in Boston. “The gains in output should continue. They’ve turned on the spigot and are getting better at finding ways to move the oil to market.”
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