Crude prices extended losses on Wednesday, declining to its lowest in four years, raising concerns that OPEC will refrain from paring a global surplus.
The North American West Texas Intermediate (WTI) crude for December delivery fell 0.70% to $76.66 per barrel on the New York Mercantile Exchange, the lowest since 2010. Prices for the European benchmark Brent crude traded 0.4% lower to $82.49 on the London-based ICE Futures Europe exchange at the time of writing.
Global oil prices fell into a bear market last month after some of the largest producers in the Organization Petroleum Exporting Countries, including Saudi Arabia discounted crude supplies as the US increased output to the highest in more than 30 years.
“The wealthier Gulf states should be able to weather a period of lower oil prices, but prospects are bleaker for countries such as Venezuela and Russia whose governments were less prudent when oil prices were high,” said Andrew Kenningham of Capital Economics.
A stockpiles report from the American Petroleum Institute showed that crude stockpiles in the US fell by 640,000 barrels last week, Bain Energy said.
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A separate report from the US Department of Energy due later in the day, is expected to show crude reserves in the US probably fell 2.2 million barrels in the week ended Oct 31, according to analysts. Gasoline supplies are expected to have fallen by 600,000 barrels.
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