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West TX Oil Closes in on $88 on Supply

West Texas Intermediate extended declines from the lowest price in more than 17 months before a report that may show crude stockpiles rose in the U.S., the world’s biggest oil consumer. Brent dropped in London.

Futures slid as much as 1.6 percent in New York, falling for a second day. Crude inventories probably expanded by 2 million barrels last week, according to a Bloomberg News survey before data from the Energy Information Administration today. The EIA, the Energy Department’s statistical arm, cut its price forecasts in a monthly report yesterday, citing increased output and reduced demand.

“It’s still the same supply scenario,” David Lennox, a resource analyst at Fat Prophets in Sydney, said by phone. “Demand is weak, and OPEC has been producing above the 30 million-barrel level.”

Bloomberg [1]

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