Crude Oil Prices - Dec 2

[dan_s]

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.

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.
> Total crude oil storage capacity in the U.S. is ~640 million barrels

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.

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.