Oil dropped for a second day on indications U.S. crude stockpiles and shale output will continue expanding, while investors wait for news on a breakthrough to the prolonged trade war.
Futures declined as much as 0.4% in New York after falling 1.2% on Monday, the most since Nov. 6. American crude inventories probably rose by 1.5 million barrels last week, according to a Bloomberg survey before government data on Wednesday. Shale output at major fields are also expected to increase next month. Global markets are in a holding pattern, sensitive to any developments on trade after months of closely-followed negotiations.
West Texas Intermediate for December delivery fell 22 cents to $56.83 a barrel on the New York Mercantile Exchange as of 8:33 a.m. Singapore time. The contract slid 67 cents to close at $57.05 on Monday. The front-month contract will expire Wednesday.
Brent for January settlement dropped 86 cents, or 1.4%, to close at $62.44 a barrel on the London-based ICE Futures Europe Exchange on Monday. The global benchmark crude traded at a $5.28 premium to WTI for the same month.
Source : Bloomberg