Oil dropped to the lowest in seven months amid a revival in output from Libya and rising volumes of fuel held in floating storage.
Futures lost as much as 2.2 percent in New York after falling 1.2 percent Monday. Libya is pumping the most crude in four years after a deal with Wintershall AG enabled at least two fields to resume production. The amount of oil stored in tankers reached a 2017 high of 111.9 million barrels earlier this month, according to Paris-based tracking company Kpler SAS.
Oil has slipped below $45 a barrel as supplies in the U.S. remain plentiful and drillers continue to add rigs, raising concerns output cuts by the Organization of Petroleum Exporting Countries and allies including Russia won’t succeed in draining bloated stockpiles. Traders are storing more crude at sea amid swelling production in the Atlantic region, a sign the market is far from rebalancing.