(Bloomberg) — Oil extended losses after an industry report pointed to rising US crude inventories, adding to bearish signs for the market.
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West Texas Intermediate dropped for a third session toward $78 a barrel, while Brent closed 1% lower on Tuesday. The American Petroleum Institute reported that crude stockpiles rose by 2.5 million barrels last week, according to people familiar. API figures also showed swelling Cushing supplies.
Oil futures are still around 9% higher this year due to supply cuts from OPEC+, but some market measures are starting to point to weakness. The prompt spread for global benchmark Brent is nearing a bearish contango structure, which would signal oversupply.
Traders are now turning their attention to an OPEC+ meeting in early June, where a rollover of existing curbs is expected.
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