Oil Ends Down Again; Global Glut Offsets US Output Drop
NEW YORK, Oct 14 (Reuters) - Oil prices settled slightly lower on Wednesday, staying under pressure this week as concerns of a growing global supply glut negated the view of recent weeks that declining U.S. production would buoy prices.
Crude futures have lost 6 percent since a report on Monday that OPEC pumped 110,000 barrels per day (bpd) more in September than in August, and nearly 2 million bpd above demand forecast for 2015.
Oil prices are still up on the month, rallying sharply in the first week of October, on optimism that falling U.S. production could mitigate the growth in OPEC supply.
But data on Tuesday from the U.S. Energy Information Administration (EIA) showed that shale oil output, which accounts for the bulk of U.S. crude production, was only expected to fall by 93,000 bpd in November. The EIA, however, said the drop would be a record and the seventh straight monthly decline.
But traders' focus was more on the possibility of rising U.S. crude stockpiles in the near-term.
U.S. inventories of crude likely rose by almost 3 million barrels last week, analysts polled by Reuters said, as refinery runs declined from autumn maintenance works. The American Petroleum Institute will issue preliminary stockpiles data at 4:30 p.m. (2030 GMT), before official inventory numbers from the EIA on Thursday.
Brent, the London-traded global benchmark for crude, settled down 9 cents, or 0.2 percent, at $49.15 a barrel. It fell a penny short of $2.80, or more than 5 percent, on Monday.
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