On Tuesday U.S. crude oil futures traded near a six-year low, as investors awaited fresh weekly information on U.S.
stockpiles of crude and refined products to estimate the strength of demand
in the world’s largest oil consumer.
On the New York Mercantile Exchange, crude oil for delivery in April slumped 54 cents, or 1.23%, to trade at $43.34 a barrel during European morning hours. Meanwhile, the May Nymex contract was down 46 cents, or 0.99%, at $45.68 a barrel.
A day earlier, the front-month contract fell to $42.85, a level not seen since March 2009, before ending at $43.88, down 96 cents, or 2.14%, as ongoing concerns over a glut in supplies drove down prices.
Later in the day the American Petroleum Institute is to issue its inventories report, while the government report due on Wednesday could show crude stockpiles rose by 4.0 million barrels in the week ended March 13.
Total U.S. crude oil inventories stood at 448.9 million barrels as of last week, the most in at least 80 years, indicating that cheap prices have yet to affect output. According to market players, concerns over diminishing spare capacity to store excess oil in the U.S. and China added pressure.
On the ICE Futures Exchange in London, Brent oil for May delivery dipped 34 cents, or 0.63%, to trade at $53.60 a barrel. London-traded Brent prices touched $52.65 on Monday, the lowest level since February 2, before closing at $53.94, down $1.07, or 1.95%.
The spread between the Brent and the WTI crude contracts stood at $7.91 a barrel, compared to $7.81 by close of trade on Monday.
On Monday, OPEC left its 2015 estimate for non-OPEC supply growth at 420,000 barrels a day and warned that output in the U.S. might only start to be curbed towards the end of the year. The organization also trimmed its forecast for demand for its own oil in 2015 to 29.19 million barrels a day, down 100,000 barrels from a previous estimate.
Earlier, on Friday, the International Energy Agency cautioned that an oil-price recovery was still vulnerable amid a production rebound in the U.S. The agency added that any appearance of stability in the oil market is tenuous.
Oil prices have fallen sharply in recent months as OPEC resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.
Investors anticipate Wednesday’s Federal Reserve statement to see if it would drop its reference to being patient before raising rates.
