(Bloomberg) — Oil dropped to the lowest level in two weeks after a government report showed that U.S. stockpiles climbed last week by more than projected.
Crude inventories rose 2.28 million barrels, according to the Energy Information Administration. A 1.3 million-barrel increase was projected by analysts surveyed by Bloomberg before the report. Oil is poised for the biggest monthly advance since April as the global surplus diminishes and OPEC’s planned talks fan speculation it could reach an accord on output.
West Texas Intermediate for October delivery dropped $1.01 cents to $45.34 a barrel at 10:45 a.m. on the New York Mercantile Exchange. Brent for October settlement, which expires Wednesday, slipped $1.09 cents, or 2.3 percent, to $47.28 a barrel on the London-based ICE Futures Europe exchange.
U.S. crude inventories expanded to 525.9 million in the week ended Aug. 26, the highest in two months, according to Energy Information Administration data. Crude stockpiles are at their highest seasonal level in more than two decades.
Crude imports increased 3.2 percent to 8.92 million last week, the highest since September 2012, the report showed.
Schlumberger Ltd. is expecting the drilling market to get worse in the third quarter thanks to a further deterioration in deep-water work around the world. Saudi Arabia, the world’s biggest oil exporter, won’t boost output to capacity and flood the market, Al-Falih said in an interview with Al-Arabiya television.
By Mark Shenk.