West Texas Intermediate traded near the lowest price in 17 months and London’s Brent was at the weakest since June 2012 after crude stockpiles surged more than forecast in the U.S., the world’s largest oil consumer.
Futures were little changed in New York after the biggest loss since September. Crude inventories expanded by 5 million barrels last week, the Energy Information Administration reported yesterday, exceeding a 2 million increase projected in a Bloomberg News survey. Brent is down more than 20 percent from its recent peak, meeting a common definition of a bear market, as global supplies rise amid signs of slowing demand.
“It’s supply, and it’s also a weakening in Europe and China,” said Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney who predicts investors may sell West Texas contracts if prices climb to about $90 a barrel. “I think $85 is the absolute rock bottom.”
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