Oil poised for lowest quarterly average price since 2009

Oil is poised for the lowest quarterly average price since the start of 2009 as industry data showed US crude stockpiles increased and Opec’s second-largest producer boosted output.

Futures lost as much as 1.2 per cent in New York, set for a decline this quarter of 24 per cent. Total US oil inventories rose by 4.6 million barrels last week, the American Petroleum Institute reported .

Iraq boosted crude output 17 per cent this month compared with a year earlier, Oil minister Adel Abdul Mahdi said. Oil has plunged more than a quarter from this year’s closing peak in June amid speculation a global glut will be prolonged.

US crude stockpiles remain almost 100 million barrels above the five-year seasonal average even as producers reduced output in six of the last seven weeks.

The Organisation of Petroleum Exporting Countries pumped more than its 30 million-barrel daily quota for the 15th consecutive month in August.

“The quarter is ending with weaker prices influenced by higher supplies after a relatively strong start,” Olivier Jakob, managing director at Petromatrix, said .

“In the next quarter, a lot of the focus is going to be on what Opec does or does not do in its December meeting.”

West Texas Intermediate for November delivery fell as much as 55 cents to $44.68 a barrel on the New York Mercantile Exchange and was at $44.99 this afternoon in London.

The volume of all futures traded was about 37 per cent below the 100-day average. Prices averaged $46.50 a barrel this quarter, the lowest since the three months ended March 2009.

Brent for November settlement fell 9 cents to $48.14 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $3.16 to WTI. Prices have averaged $51.30 this quarter.

- Bloomberg