Oil closed at the lowest level in more than two-months as U.S. industry data showed crude supplies expanded for the world’s biggest consumer, compounding a global surplus.

West Texas Intermediate futures dropped 2.9 percent. Inventories increased by 6.3 million barrels last week, the American Petroleum Institute was said to report Tuesday. Energy Information Administration data on Thursday is projected to show that stockpiles rose 1.3 million barrels, according to a Bloomberg survey.

Oil has slid about 45 percent the past year amid signs the global glut will be prolonged and the Organization of Petroleum Exporting Countries continues to pump above its target. WTI has traded between $42 and $51 since August when it touched a six-year low of $37.75. The EIA boosted its estimate for U.S. output in 2015, while Iraq has loaded as many as 10 tankers in recent weeks to deliver crude to American ports.

WTI for December delivery fell $1.28 to close at $42.93 a barrel on the New York Mercantile Exchange. It was the lowest settlement since Aug. 27. The contract touched $42.62, the lowest intraday level since Oct. 27. The volume of all futures traded was 26 percent above the 100-day average at 2:50 p.m.

Brent for December settlement declined $1.63, or 3.4 percent, to end the session at $45.81 a barrel on the London-based ICE Futures Europe exchange. It was the lowest close since Aug. 26. The European benchmark crude was at a $2.88 premium to WTI.

Source : Bloomberg