Oil prices continue to extend losses on Tuesday as the West Texas Intermediate (WTI) falls below $77. Meanwhile, analysts’ forecast a rise in US stockpiles for a sixth week could signal persisting oversupply concerns.
Futures for the North American West Texas Intermediate (WTI) for December delivery declined 0.25% to $77.00 a barrel on the New York Mercantile at the time of writing. The contract traded $1.25 lower to $77.40 on Monday, the lowest since Nov 4.
The European Brent crude for December settlement slid 0.6% to $81.87 a barrel on the ICE Futures Europe exchange based in London. The contract fell 1.3% closing at $82.34 on Monday, the lowest since October 2010.
Global oil prices fell into a bear market last month after some of the largest producers in the Organization Petroleum Exporting Countries, including Saudi Arabia discounted crude supplies as the US increased output to the highest in the last three decades.
Crude inventories
The market will be focusing on crude inventories reports from the Energy Information Administration on Thursday and another from the American Petroleum Institute on Wednesday.
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The report from the energy Information Administration is expected to show an increase in US crude inventories to 381.2 billion in the week ended Nov 7.
OPEC
Kuwait officials said they have no plans t cut the country’s output, which is forecasted to rise to 4 million barrels a day by 2020, according to Kuwait’s Oil Minister Ali Al-Omair.
This comes after news that Organization Petroleum Exporting Countries may not cut output at its upcoming meeting, which is scheduled for Nov 27 in Vienna.
The 12-member group supplied 30.974 million barrels a day in October, according to analysts.
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