Oil price slumps again adding to worries about global glut

Oil prices fell as much as 2% yesterday, with Brent crude oil trading not far from 11-year lows, as data showing fresh supply builds at the delivery point for US crude futures added to worries about a global glut.

Market intelligence firm Genscape reported an inventory increase of 1.4m barrels at the Cushing, Oklahoma delivery hub for the US crude’s West Texas Intermediate (WTI) futures, traders who saw the data said.

“Bearish fundamentals are hanging over the oil markets like storm clouds, with no break in sight or relief in the near future,” said Chris Jarvis, founder of Caprock Risk Management, an oil market consultancy in Maryland.