West TX Oil at $81 as U.S. Supply Seen Rising

West Texas Intermediate fell for a third day amid speculation crude inventories increased to near a four-month high in the U.S., the world’s biggest oil consumer. Brent slid in London.

Futures dropped as much as 0.7 percent in New York. Crude stockpiles are forecast to have expanded by 3.8 million barrels to 381.5 million last week, a Bloomberg News survey shows before government data tomorrow. OPEC is unlikely to reduce its production target when it meets next month, said Mohsen Qamsari, a director for international affairs at National Iranian Oil Co., according to the Oil Ministry’s news service.

“It’s clear that the supply situation is at a record in terms of stockpiles, so it’s going to take some time to clear that excess,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone today. With OPEC, “the expectation is that they will announce a cut but the question is whether or not they will deliver on them.”

Bloomberg