West Texas Intermediate fell for a second day as forecasts for a sixth weekly gain in U.S. crude stockpiles bolstered speculation that rising supply is outpacing demand. Brent slid in London.
Futures dropped as much as 0.7 percent in New York. Crude inventories in the U.S., the world’s biggest oil consumer, probably expanded by 1 million barrels last week, a Bloomberg News survey shows before a government report on Nov. 13. The Organization of Petroleum Exporting Countries won’t cut its collective output when it meets in Vienna this month and prices will stabilize once the surplus is absorbed, according to Kuwait Oil Minister Ali Al-Omair.
Crude is extending losses in a bear market amid signs that global supply is outpacing demand. Leading OPEC members are resisting calls to cut output and instead reducing export prices to the U.S., where they’re competing with the fastest pace of production in more than 30 years.
“There’s sufficient supply to meet demand,” said David Lennox, a resource analyst at Fat Prophets in Sydney who predicts OPEC will maintain its output target when it gathers on Nov. 27. “A substantial cut is needed to see prices rally.”
WTI for December delivery declined as much as 54 cents to $76.86 a barrel in electronic trading on the New York Mercantile Exchange and was at $77.11 at 1:20 p.m. Singapore time. The contract decreased $1.25 to $77.40 yesterday, the lowest close since Nov. 4. The volume of all futures traded was about 14 percent below the 100-day average. Prices are down 22 percent this year.