Oil Falls to Two-Week Low After Data Shows U.S. Stockpile Gains

Futures slid as much as 1.8 percent in New York after falling 3.1 percent the previous two sessions. Crude supplies rose by 14.2 million barrels last week, the American Petroleum Institute was said to report Tuesday. Government data Wednesday is forecast to show stockpiles climbed for a fifth week. Oil output from the U.S. will surge next year to the highest level since 1970, according to updated estimates from the Energy Information Administration.

“An inventory build-up like this one is going to be OPEC’s biggest nightmare,” said Naeem Aslam, chief market analyst at Think Markets U.K. “Demand is simply just too weak to consume the current glut that exists.”

West Texas Intermediate for March delivery lost as much as 95 cents to $51.22 a barrel on the New York Mercantile Exchange and traded at $51.56 at 9:36 a.m. in London. Total volume traded was about 10 percent above the 100-day average. The contract fell 84 cents to $52.17 on Tuesday.

Brent for April settlement dropped as much as 61 cents, or 1.1 percent, to $54.44 a barrel on the London-based ICE Futures Europe exchange. The contract fell 67 cents to $55.05 on Tuesday. The global benchmark crude traded at a premium of $2.43 to April WTI.
more at:  https://www.bloomberg.com/news/articles/2017-02-07/oil-extends-decline-as-report-shows-u-s-crude-stockpiles-surge

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