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Oil Drops Below $45 as U.S. Stockpiles Seen Worsening Collapse

Newark oil storage.

Newark oil storage.

Photographer: Bob Last/Getty Images
Updated on

Oil fell below $45 a barrel amid speculation that U.S. stockpiles will increase, exacerbating a global supply glut that’s driven prices to the lowest in more than 5 1/2 years.

The U.S. benchmark dropped as much as 4.1 percent before paring losses. Crude inventories probably gained 1.75 million barrels last week, a Bloomberg News survey showed before government data tomorrow. The United Arab Emirates, a member of the Organization of Petroleum Exporting Countries, will continue to expand output capacity, while shale drillers will probably be the first to curb production as prices fall, according to Energy Minister Suhail Al Mazrouei. The U.S. grade briefly traded above Brent for the first time since July 2013.