Oil traded below $47 a barrel as forecasts for rising U.S. crude stockpiles bolstered speculation that a global glut that spurred a price collapse may persist.
Futures were little changed in New York. Crude supplies in the U.S., the world’s biggest oil consumer, probably expanded by 2.4 million barrels last week, according to a Bloomberg News survey before government data on Jan. 22. Current prices should slow the nation’s output growth in the second half of the year, Pulitzer Prize-winning oil historian Daniel Yergin said.
Oil slumped almost 50 percent last year as the U.S. pumped crude at the fastest rate in more than three decades and the Organization of Petroleum Exporting Countries resisted calls to curb supply. BHP Billiton Ltd. will cut the number of active drill rigs in the U.S. by about 40 percent amid the price drop.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.