Oil Drops From 5-Year Low as U.S. Stockpiles Seen Adding to Glut - Bloomberg

Oil Drops From 5-Year Low as U.S. Stockpiles Seen Adding to Glut - Bloomberg:



"Oil fell for a fourth day, extending losses from a five-year low amid speculation that U.S. crude inventories will stay at the highest level since June, offering no relief from a global glut.



Futures dropped as much as 1.2 percent in New York. Stockpiles in the U.S., the world’s largest oil consumer, are projected to remain at 387.2 million barrels last week, a Bloomberg News survey shows before government data tomorrow. Hedge funds pared bullish bets on Brent crude for the first time since before OPEC’s decision last month to maintain output quotas accelerated the market’s collapse. 




Oil has slumped 46 percent this year, set for the biggest annual decline since 2008, as the highest U.S. production in more than three decades contributed to a global surplus estimated by Qatar at 2 million barrels a day. Saudi Arabia, which is steering the Organization of Petroleum Exporting Countries to resist cutting output, has said it’s confident that prices will rebound as economic growth boosts demand."



'via Blog this'