BLBG: Oil Little Changed Near Three-Year Low Before U.S. Supply Data
By Christian Schmollinger and Grant Smith
Dec. 3 (Bloomberg) -- Crude oil traded near a three-year low before a report forecast to show that U.S. crude inventories expanded for a 10th week.
The Energy Department will probably say crude-oil supplies rose 1 million barrels last week, according to a Bloomberg News survey, as the recession hit consumer spending. Gasoline demand declined for a 32nd week in a row, a report by MasterCard Inc. showed yesterday.
“Expectations that the recent pattern of stock builds will continue are doing nothing to help this market, where the demand picture is already rather bleak,” said Christopher Bellew, senior broker with Bache Commodities Ltd. in London.
Crude oil for January delivery fell as much as 54 cents, or 1.2 percent, to $46.42 a barrel on the New York Mercantile Exchange. That’s the lowest since May 20, 2005. The contract, which earlier advanced as high as $48.10, and traded for $47.12 as of 1:41 p.m. in London.
Brent crude fell below $45 a barrel for the first time in more than three years. Brent for January settlement on London’s ICE Futures Europe exchange declined as much as 57 cents, or 1.3 percent, to $44.87 a barrel.
The contract was unchanged at $45.44 a barrel at 1:43 p.m. London time.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
