Azernews.Az

By Bloomberg

Oil fell for the third time in four days before U.S. government data forecast to show crude stockpiles expanded further from a record.

Futures dropped as much as 0.5 percent in New York. Crude inventories probably increased by 3.3 million barrels last week, according to a Bloomberg survey of analysts before an Energy Information Administration report on Wednesday. OPEC technical officials will meet with other producers next month in Vienna to discuss the global market ahead of a June 5 ministerial gathering.

Oil’s rally from a six-year low in March has been stymied by signs a global supply glut that drove prices into a bear market last year will persist. The Organization of Petroleum Exporting Countries, which pumps about 40 percent of the world’s crude, has resisted calls to cut output even as the U.S. produces near the fastest pace in more than three decades.

“Supply is one of the key factors that drove the large sell-off and for that reason the EIA numbers will have intense scrutiny,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone. “We’re likely to see subdued trading ahead of that key data.”

West Texas Intermediate for June delivery declined as much as 27 cents to $56.79 a barrel in electronic trading on the New York Mercantile Exchange, and was at $56.88 at 2:18 p.m. Sydney time. The contract rose 7 cents to $57.06 on Tuesday. Total volume was about 74 percent below the 100-day average. Prices have advanced 20 percent in April, set for the biggest monthly gain since May 2009.

U.S. Stockpiles

Brent for June settlement decreased as much as 24 cents, or 0.4 percent, to $64.40 a barrel on the London-based ICE Futures Europe exchange. It slid 19 cents to $64.64 on Tuesday. The European benchmark crude traded at a premium of $7.58 to WTI.

U.S. crude stockpiles climbed by 4.2 million barrels in the week ended April 24, the industry-funded American Petroleum Institute reported Tuesday, said a person familiar with the data. The country is the world’s largest oil consumer.

Inventories increased to 489 million through April 17, rising for a 15th week, according to the EIA. That’s the most in weekly data from the Energy Department’s statistical arm that started in August 1982. Supplies haven’t been this high since 1930, based on monthly records dating back to 1920.

OPEC Talks

Technical specialists from Russia, Mexico and Oman will confer with their OPEC counterparts May 12 and May 13, said two people who asked not to be identified because the discussions are private. The meeting was suggested by Venezuela, which has urged the 12-member group to revive prices by reducing output.

The chances of OPEC agreeing to a joint production cut with non-members are limited, according to Commerzbank AG. Saudi Arabia, the world’s biggest oil exporter, led the group’s decision in November to maintain its collective quota at 30 million barrels a day.

The oil market is in “excellent” condition, Prince Abdulaziz bin Salman, Saudi Arabia’s deputy oil minister, said Monday without elaborating. Separately, King Salman on Wednesday named Muhammad Bin Nayef as crown prince, according to a statement from the royal court.