Crude Oil Is Steady Amid Forecasts of Increased U.S. Supplies

Nov. 19 (Bloomberg) — Crude oil was little changed in New York amid forecasts that a report will show U.S. oil supplies increased for an eighth week as a recession erodes global demand.

Stockpiles probably climbed 1 million barrels in the week ended Nov. 14, according to the median of 12 analyst estimates before an Energy Department report today. The Organization of Petroleum Exporting Countries, the International Energy Agency and U.S. Energy Department slashed demand projections this month.

“The bottom line is that you don’t have anything solid out there to support a sustained rally,” said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. “The financial crisis has led to economic weakness and falling demand in the U.S. The problems in the U.S. are now spreading to China and other developing countries.”

Bloomberg