West Texas Intermediate extended its drop from the lowest price in more than two years amid speculation rising U.S. supplies are exacerbating a global glut that’s driven prices into a bear market. Brent fell in London.
Futures slid as much as 1.5 percent in New York, declining for the seventh time in eight days. Crude inventories in the U.S., the world’s biggest oil consumer, expanded by 10.2 million barrels last week, the industry-funded American Petroleum Institute in Washington reported yesterday, according to Bain Energy. Stockpiles are projected to have gained by 2.45 million, a Bloomberg News survey shows before government data today.
Oil futures have collapsed into bear markets as shale supplies boost U.S. output to the highest level in almost 30 years amid signs of weakening global demand. 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.