2014.11.2000:00:38UTC+00WTI falls to under $75 behind increase in US crude oil inventories

Prices of West Texas Intermediate fell to below $75 after stockpiles of oil in the US, the biggest consumer in the world, was revealed to have increased and behind investors’ weighing of the likelihood of a production cut from the Organization of Petroleum Exporting Countries.

Futures of the American crude oil benchmark with a delivery date in December were mostly unchanged after three straight days of losses. The contract, which expires today, was trading 9 cents lower at a price per barrel of $74.49 early afternoon Sydney time on the New York Mercantile Exchange. Futures for January advanced by 1% to $74.51. Trading volume for all futures was 13% lower than the 100 day average. WTI has declined by 24% so far this year.

The Energy Information Administration said that supplies of crude oil in the US increased by 2.6 million barrels last week to push the total up to 381.1 million. Samir Kamal, the governor of Libya for the OPEC, said that the group should start reducing its supply and slash its output target levels. The OPEC’s largest members, are seen to be resisting calls by smaller producing countries including Venezuela for a production cut.

Chief strategist Michael McCarthy from Sydney’s CMC Markets says that, “Concerns about the global growth outlook and the increases in supply are playing out on the energy complex. Even if there is a statement from OPEC that agrees that there should be production cuts, there will be real skepticism that they can be delivered.”

The OPEC collectively accounts for 40% of the world’s oil supply. It exceeded its daily target of 30 million barrels last month by hitting 30.97 million.

Brent, the European benchmark, with a delivery date in January traded 2 cents up at a price per barrel of $78.12. It traded with a premium over WTI of $3.61 after closing yesterday at $3.60 in London’s ICE Futures Europe exchange.