Oil fell for a second day before U.S. government data forecast to show crude stockpiles in the world™s biggest consumer expanded to a record level.
Futures slid as much as 3.7 percent in New York. Crude supplies probably rose by 3 million barrels to 420.9 million through Feb. 13, according to a Bloomberg News survey before a report Thursday from the Energy Information Administration. That would be the highest in weekly records compiled by the EIA since August 1982. Industry data Wednesday showed inventories climbed by 14.3 million barrels, according to reports on Twitter.
Rising U.S. crude stockpiles contributed to a global glut that drove prices almost 50 percent lower in 2014. Marathon Oil Corp. will cut an additional 20 percent from its spending plan for this year, as companies including Royal Dutch Shell Plc and Chevron Corp. reduce investments in response to the collapse.
West Texas Intermediate for March delivery dropped as much as $1.91 to $50.23 a barrel in electronic trading on the New York Mercantile Exchange and was at $50.70 at 1:24 p.m. Sydney time. The contract fell $1.39 to $52.14 on Wednesday. The volume of all futures traded was about 39 percent above the 100-day average. Prices have decreased 4.8 percent this year.
Source : Bloomberg