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WTI oil futures wallow near 2-month low ahead of weekly supply data

Published 12/11/2015, 08:41 pm
Updated 12/11/2015, 08:48 pm
© Reuters.  U.S. oil prices wallow near 2-month lows
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Investing.com - West Texas Intermediate oil futures wallowed near a two-month low on Thursday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a faster pace than expected last week.

Crude oil for delivery in December on the New York Mercantile Exchange inched up 12 cents, or 0.27%, to trade at $43.05 a barrel during European morning hours. A day earlier, Nymex prices fell to $42.62, the lowest since October 27.

The U.S. Energy Information Administration will release its weekly report on oil supplies at 11:00AM ET Thursday. The data was expected to show that crude inventories rose by 1.1 million barrels last week. The report comes out one day later than usual due to Wednesday's Veterans Day's holiday in the U.S.

The American Petroleum Institute, an industry group, said on Tuesday that U.S. crude inventories rose by 6.3 million barrels in the week ended November 6.

Despite a tighter production outlook in the U.S., total crude inventories stood near levels not seen for this time of year in at least the last 80 years.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery tacked on 2 cents, or 0.04%, to trade at $46.65 a barrel.

On Wednesday, Brent prices fell to a two-month low of $46.42 as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.

Oil prices have been on the decline in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

OPEC will meet on December 4 to decide whether to extend their strategy of defending market share by keeping production high.

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