Oil Down 4th Day On Stockpile Worries, Weak Wall Street
Known as "contango", the discount has been growing as traders store oil that is immediately available in the hope of selling later at better prices when fundamentals improve.
"The spread weakness is being driven mainly by a large and increasing level of supply," said Jim Ritterbusch of Chicago-based oil consultancy Ritterbusch & Associates. "More specifically, an expected supply upswing at Cushing may be spurring some of the spread action."
Market intelligence firm Genscape reported a 1.8 million-barrel build at the Cushing, Oklahoma delivery point for U.S. crude futures between Oct 30 and Nov. 5, said traders who saw the data.
Separately, a Reuters poll showed analysts expecting crude stockpiles across the United States to have risen for a seventh straight week, with a build of 800,0000 barrels last week.
The American Petroleum Institute will release its inventory data on Tuesday at 4:30 p.m. EST (2130 GMT), while the U.S. Department of Energy's Energy Information Administration will publish its data on Thursday at 11:00 a.m. EST (1600 GMT), delayed a day by Wednesday's Veterans Day holiday.
Wall Street's main stock index, the S&P 500, fell 1 percent, adding to the bearish sentiment.
Oil prices were up earlier on Monday after OPEC forecast stronger supply-demand fundamentals next year. Abdullah al-Badri, Secretary-General of the Organization of the Petroleum Exporting Countries, said the market was expected to become more balanced in 2016 as demand grew.
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