Crude Oil Falls As Focus Turns To Glut In U.S. (Investor's Business Daily)

Oil resumed its slump as attention returned to an unprecedented glut in U.S. crude inventories. Futures fell 1.6% in New York and 2.6% in London. Crude advanced the most in more than two weeks on Wednesday as the U.S. Federal Reserve cut its estimates for interest rates, reducing the value of the dollar and bolstering the appeal of commodities as an investment. U.S. crude supplies and output rose to the highest levels in more than 30 years, Energy Information Administration data showed.
U.S. supply shows no sign of slowing, even as the number of active oil rigs dropped to the lowest since 2011. OPEC will maintain its production to keep market share, Kuwait Oil Minister Ali Al-Omair said. Saudi Arabia, the group’s largest producer, won’t interfere in the market, according to Prince Turki Al-Faisal, a former intelligence chief of the kingdom.
“Excess global supply seems to be the main driver of the market right now,” Gene McGillian, a senior analyst at Tradition Energy in Stamford, Conn., said by phone. “The reaction to the Fed statements was brief. They haven’t changed the oil supply outlook.”
West Texas intermediate crude for April delivery dropped 70 cents to settle at $43.96 a barrel on the New York Mercantile Exchange. A settlement at $42.82 or lower would be 20% below this year’s peak, meeting a common definition of a bear market. The more-active May oil contract slid $1.12 to $45.53. The volume of all futures traded was 7.3% above the 100-day average at 2:50 p.m.