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WTI oil futures extend losses after U.S. supply report

Published 15/10/2015, 16:04
© Reuters.  U.S. oil futures add to losses after U.S. supply data
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Investing.com - West Texas Intermediate oil futures extended losses on Thursday, after data showed that oil supplies in the U.S. rose more than expected last week, underlining concerns over weak demand.

Crude oil for delivery in November on the New York Mercantile Exchange fell to an intraday low of $45.60 a barrel, the weakest level since October 5, before trading at $45.70 during U.S. morning hours, down 94 cents, or 2.02%. Prices were at around $45.77 prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 7.6 million barrels in the week ended October 9.

Market analysts' expected a crude-stock rise of 2.8 million barrels, while the American Petroleum Institute late Wednesday reported an increase of 9.3 million barrels.

Total U.S. crude oil inventories stood at 468.6 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 2.6 million barrels, compared to expectations for a decline of 1.7 million barrels.

The data came out one day later than usual due to Monday's Columbus Day holiday in the U.S.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery shed 56 cents, or 1.12%, to trade at $49.14 a barrel.

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.

Saudi Arabia and other Gulf OPEC members have indicated they will continue to stick to their policy of defending market share by keeping production high.

Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.44 a barrel, compared to $2.98 by close of trade on Wednesday.

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