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WTI Trades Near 2-Year Low as U.S. Stockpiles Gain

West Texas Intermediate traded near the lowest closing price in two years after government data showed crude stockpiles gained more than forecast in the U.S., the world’s biggest oil consumer. Brent fell in London.

Futures slid as much as 0.6 percent in New York, extending a 2.4 percent decline yesterday. Crude stockpiles expanded 7.1 million barrels last week, the Energy Information Administration reported yesterday, compared with a 3 million increase predicted in a Bloomberg News survey. The Organization of Petroleum Exporting Countries needs to reduce output by 500,000 barrels a day because the market is oversupplied, said Samir Kamal, Libya’s governor to the 12-member group.

Crude has collapsed into a bear market as producers including Saudi Arabia cut export prices. Global supplies are rising as the U.S. pumps the most oil in almost three decades and Russia’s output nears a post-Soviet record.

“Oil’s getting a downward push today due to the expanding stockpiles data,” Hong Sung Ki, a commodities analyst at Samsung Futures Inc. in Seoul, said by phone. “Crude has almost hit its floor, but until OPEC cuts production I don’t see any factors that will drive prices up.”

WTI for December delivery was at $80.30 a barrel in electronic trading on the New York Mercantile Exchange, down 22 cents, at 8:36 a.m. London time. It dropped $1.97 to $80.52 yesterday, the lowest close for a front-month contract since June 28, 2012. The volume of all futures traded was about 24 percent above the 100-day average for the time of day. Prices have decreased 18 percent this year.

http://www.bloomberg.com/