(Bloomberg) by Mark Shenk – Oil stockpiles in the U.S. have jumped by more than 30 million barrels in four weeks as crude output again exceeded 9 million barrels a day. Inventories climbed 6.33 million barrels to 413.1 million last week, the Energy Information Administration said, extending the four-week gain to 30.7 million. The four-week gain and the total were the most since the EIA began compiling the data weekly in 1982. Oil has slumped more than half since June as U.S. crude output advanced and the Organization of Petroleum Exporting Countries resisted calls to reduce production. Production slipped to 9.18 million barrels a day from 9.21 million, the most in more than three decades. Output has topped 9 million every week since October. The drop in prices has led companies to idle drilling rigs and curb capital expenditure plans. “We’ve got too much of a good thing,” Stewart Glickman, an equity analyst at S&P Capital IQ in New York, said by phone. “This is the same problem that occurred with natural gas as technology improved. Capital expenditure is down but production is set to continue rising.” The EIA forecasts production will increase to 9.31 million barrels a day this … continue reading
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