West Texas Intermediate traded near the lowest price in more than two years as the International Energy Agency forecast the slowest consumption growth since 2009. Brent gained in London.
Futures were little changed in New York after falling 4.6 percent yesterday, the most since November 2012. Global oil demand will increase by 650,000 barrels a day this year, the Paris-based agency said in its monthly report yesterday. That’s a reduction of 250,000 from a prior estimate. Crude stockpiles in the U.S., the world’s biggest consumer, probably expanded by 2.5 million barrels last week, a Bloomberg News survey shows before government data tomorrow.
Oil has collapsed into a bear market as shale supplies boost U.S. output to the most in almost 30 years and global demand growth weakens. The largest 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. Iran isn’t concerned about falling prices, according to its deputy oil minister.
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