Oil Drops in New York as Supplies Seen Increasing - report
Oil declined for a second day in New York amid speculation that U.S. crude inventories rose last week and after the International Energy Agency cut its forecast for global demand growth this quarter. Futures slipped as much as 1.2%, Bloomberg reported.
U.S. crude stockpiles probably increased last week to the highest level in more than three months, according to a Bloomberg survey before an Energy Department report on Nov. 15. OPEC will need to pump less crude this quarter as demand growth slows, the IEA said. Oil slid yesterday as investors awaited budget talks in the U.S., and extended losses after European leaders said they'll meet again Nov. 20 to discuss additional funding for Greece.
Crude for December delivery slid as much as 99 cents to US$84.58 a barrel in electronic trading on the New York Mercantile Exchange and was at $85.10 at 1.30 p.m. London time. The contract fell 50 cents to $85.57 yesterday. Prices are down 14% this year.
Brent for December settlement declined 99 cents, or 0.9%, to $108.08 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $22.98 to West Texas Intermediate futures, compared with $23.50 yesterday.
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