Oil extended losses below $50 a barrel amid speculation that US crude inventories will expand, exacerbating a global supply glut that’s driven prices to the lowest level since April 2009.
Futures fell as much as 3.1 percent in New York, declining for a fourth day. Stockpiles in the world’s biggest oil consumer probably rose by 750,000 barrels last week, a Bloomberg News survey shows. A gauge of the dollar held near a nine-year high, diminishing the investment appeal of commodities, as the Federal Reserve weighs raising interest rates and amid concern that Greece will leave the European Union.
Oil slumped almost 50 percent in 2014, the most since the 2008 financial crisis, after the Organization of Petroleum Exporting Countries resisted calls to cut output as they compete with US producers. The market faces “more problems” this year, according to Morgan Stanley, with surging output in Russia and Iraq contributing to a surplus that Qatar estimates at 2 million barrels a day.
“The market is obsessed with the supply side,” Hans van Cleef, energy economist at ABN Amro Bank NV in Amsterdam, said by phone. “Prices have dropped too fast and too far, but with the market this negative it’s hard to see a trigger which could turn the sentiment. If U.S. inventories are higher than expected, we could see Brent below $50 this week.”
Ask us about our FREE signals program: 
Other top stories:
Countless Already Joined and Made a Profit - What About You?
The Importance of Diversification
How I Made Over $30,000 a Year by Investing in Binary Options
Follow us and SHARE this story on Facebook/Twitter:
