Investing.com - West Texas Intermediate oil futures extended losses on Wednesday, after data showed that oil supplies in the U.S. rose for the tenth consecutive week last week.
Crude oil for delivery in January on the New York Mercantile Exchange sank $1.02, or 2.44%, to trade at $40.83 a barrel during U.S. morning hours. Prices were at around $41.30 prior to the release of the inventory data.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 1.2 million barrels in the week ended November 27.
Market analysts' expected a crude-stock decline of 471,000 barrels, while the American Petroleum Institute late Tuesday reported a supply gain of 1.6 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 428,000 barrels last week, compared to forecasts for a build of 725,000 barrels.
Total U.S. crude oil inventories stood at 489.4 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.
Gasoline inventories increased by 0.1 million barrels, below expectations for a gain of 1.5 million barrels, while distillate stockpiles rose by 3.1 million barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery shed 95 cents, or 2.13%, to trade at $43.49 a barrel, as market players weighed the likelihood of an OPEC supply cut.
The oil cartel will meet in Vienna on Friday to review their output strategy. While most market analysts expect the group to keep their production quota unchanged, pressure is building on Saudi Arabia to waver from its no-cut policy.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by OPEC last year not to cut production in order to defend market share.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.66 a barrel, compared to $2.59 by close of trade on Monday.
Besides the OPEC meeting, oil traders are focusing on Friday’s nonfarm payrolls report for November, the last jobs report before the Fed decides on interest rates at its December 15-16 meeting.
Market players are also awaiting the outcome of Thursday’s European Central Bank meeting amid speculation the central bank could ramp up its monetary stimulus program.