Friday, October 31, 2014

West TX Oil Near $81 After Another Poor Month

West Texas Intermediate headed for the biggest monthly decline in more than two years amid signs that OPEC boosted output to a 14-month high even as crude slumped into a bear market. Brent slid in London.

Futures fell as much as 0.3 percent in New York, bringing October’s drop to about 11 percent. Production from the 12-member Organization of Petroleum Exporting Countries increased by 53,000 barrels a day to 30.974 million, a third monthly gain, a Bloomberg survey shows. The Federal Reserve said this week the U.S. labor market has strengthened enough to withstand an end to its unprecedented asset-purchase program.

Oil has collapsed into a bear market amid rising global supplies as leading OPEC members resisted calls to cut output before a policy meeting next month. The U.S. is pumping at the fastest pace in more than three decades while Russia’s production has climbed to near a post-Soviet record.

Bloomberg

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