Oil dropped below $45 a barrel before U.S. government data forecast to show crude stockpiles expanded in the world’s biggest oil consumer.
Futures slid as much as 3.4 percent in New York, extending Tuesday’s 7.7 percent decline. Inventories probably increased by 900,000 barrels last week, according to a Bloomberg survey before data Wednesday from the Energy Information Administration. Supplies rose by 7.6 million barrels through Aug. 28, the industry-funded American Petroleum Institute was said to have reported.
West Texas Intermediate for October delivery declined as much as $1.55 to $43.86 a barrel on the New York Mercantile Exchange and was at $44.15 at 9:58 a.m. Sydney time. The contract slid $3.79 to $45.41 on Tuesday. The volume of all futures traded was about 70 percent above the 100-day average. Prices have decreased 17.2 percent this year.
Brent for October settlement decreased as much as $1.08, or 2.2 percent, to $48.48 a barrel on the London-based ICE Futures Europe exchange. It dropped $4.59, or 8.5 percent, to $49.56 on Tuesday. The European benchmark crude traded at a premium of $4.30 to WTI.