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Oil futures extend losses as global supply glut worries weigh

Published 05/11/2015, 14:46
Updated 05/11/2015, 14:48
© Reuters.  Crude oil futures down again on glut worries
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Investing.com - Oil prices extended losses from the prior session on Thursday, as the ongoing glut in global supplies continued to weigh on the commodity.

Crude oil for delivery in December on the New York Mercantile Exchange shed 29 cents, or 0.63%, to trade at $46.04 a barrel during U.S. morning hours.

A day earlier, Nymex oil prices tumbled $1.58, or 3.3%, after data showed that oil supplies in the U.S. rose for the sixth straight week last week.

The U.S. Energy Information Administration said crude oil inventories increased by 2.847 million barrels last week. Market analysts' expected a crude-stock rise of 2.787 million barrels.

Total U.S. crude oil inventories stood at 482.8 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.

The report also showed that gasoline inventories decreased by 3.3 million barrels, compared to expectations for a decline of 1.0 million barrels, while distillate stockpiles fell by 1.3 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery dipped 11 cents, or 0.24%, to trade at $48.47 a barrel. On Wednesday, Brent prices lost $1.96, or 3.88%.

The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.43 a barrel, compared to $2.26 by close of trade on Wednesday.

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