Oil traded near a two-day low in New York after China said its economy grew at the slowest pace in two years and U.S. crude supplies were forecast to increase. Futures were little changed following yesterday’s 0.5 percent decline after China’s statistics bureau said the economy grew at 9.1 percent in the third quarter, less than forecast. An Energy Department report tomorrow may show U.S. crude stockpiles climbed for a second week, according to a Bloomberg News survey. Technical indicators indicate prices have advanced too fast to be sustainable. “The number from China is getting a bit worse than before,” said Ken Hasegawa, an energy trading manager from broker Newedge in Tokyo, who forecasts prices to drop $5 a barrel. “If the recovery of the economies in Europe and the U.S. is getting worse, then the economies of China and Asia will show some damage.” Crude for November delivery was at $86.40 a barrel, up 2 cents, in electronic trading on the New York Mercantile Exchange at 2:52 p.m. Sydney time. The contract earlier slid as much as 40 cents to $85.98. It decreased yesterday to $86.38, the lowest close since Oct. 13. Prices are down 5.5 percent this year. Brent oil for December settlement rose 5 cents, or 0.1 percent, to $110.21 a barrel on the London-based ICE Futures Europe exchange. The contract yesterday fell $2.07, or 1.8 percent, to $110.16. Stochastic Oscillators Crude is extending losses in New York as the five-day stochastic oscillators have risen above 70, signaling prices have climbed too quickly to be sustained, according to data compiled by Bloomberg. Investors tend to sell contracts when the market is considered overbought. Crude stockpiles probably rose by 2 million barrels last week, according to the median of nine analyst estimates in a Bloomberg News survey before the weekly Energy Department report tomorrow. All the respondents forecast an increase. Gasoline inventories probably declined 1 million barrels last week, according to the survey. Stockpiles of distillates, a category that includes heating oil and diesel, likely fell 1.5 million barrels, the survey shows. China’s gross domestic product increased less than the median estimate of 9.3 percent in a Bloomberg News survey of 22 economists. The country is the second biggest crude-consuming nation behind the U.S. Libyan Output Libya’s Ras Lanuf oil refinery, the country’s largest, will be ready to start operations next month after being shut in March amid fighting between forces loyal to Muammar Qaddafi and rebels seeking his ouster, acting Chief Executive Officer Abdo A. Ahmed at Libyan Emirates Refining Co. said yesterday. The plant can process 220,000 barrels of crude a day. Fighting in Libya reduced the availability of light, sweet crude, or oil with low density and sulfur content. The country’s output fell to 45,000 barrels a day in August, according to Bloomberg estimates. The North African nation pumped 100,000 barrels a day last month. To contact the reporters on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net; Christian Schmollinger in Singapore at christian.s@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

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