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West Texas Intermediate oil fell after a government report showed U.S. crude inventories expanded last week, exacerbating a global glut. Brent dropped to the lowest level in almost four years.
Futures slid as much as 2.4 percent in New York, declining for the seventh time in eight days. U.S. crude supplies rose 8.92 million barrels to 370.6 million last week, according to the Energy Information Administration. Stockpiles were projected to increase by 2.45 million barrels, according to the median estimate of 10 analysts surveyed by Bloomberg.
Prices have collapsed amid speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will refrain from cuts needed to drain a surplus, according to Commerzbank AG.
WTI for November delivery fell $1.09, or 1.3 percent, to $80.69 a barrel at 11.03 a.m. on the New York Mercantile Exchange. It earlier touched $79.78, the least since June 29, 2012.
Brent for November settlement, which expires today, declined 33 cents, or 0.4 percent, to $83.45 a barrel on the London-based ICE Futures Europe exchange. Futures reached $82.60, the lowest since November 2010.
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