Oil extended losses after a government report showed that U.S. crude supplies surged the most in almost 14 years.
Inventories rose 10.1 million barrels in the week ended Jan. 16, the biggest gain since March 2001, according to the Energy Information Administration. Refineries operated at 85.5 percent of their capacity, the lowest level since April 2013 as units were idled for maintenance. Imports from Canada were more than 3 million barrels a day for a third week.
“There’s a clear bearish combination here, with ongoing robust imports from Canada and a sharp decline in refinery activity for planned seasonal maintenance,” Tim Evans, an energy analyst at Citi Futures Perspective in New York, said by phone. “We’re close to a modern-day record for crude supplies. There’s clearly too much oil.”
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