Oil prices back below $30

Oil prices dropped during the today’s session. WTI fell below the $27 level as the recent crude oil stockpile report revived fears about the huge supply glut. Futures for WTI plunged 4.30% to $26.27 per barrel, while Brent futures slided with 2.17% to $30.17 per barrel.

The Energy InformationAdministration (EIA) said on Wednesday that total crude stockpiles in the US slipped unexpectedly by 754,000 barrels over the week to February 5, compared to forecasts of a rise of about 3.13 million barrels.However, crude reserves at the Cushing, Oklahoma delivery hub increased to an all-time high of nearly 65 million barrels.The report also showed that gasoline inventories jumped by 1.26 million barrels over the measured week, much more than the rise of 243,000 barrels expected by analysts.Moreover, distillate stockpiles climbed by 1.28 million barrels, compared to afall of 1.58 million barrels expected by the market.On Wednesday, OPEC said in its latest monthly report it pumped 32.33 million barrels per day (bpd) of crude during January, up from the32.20 million bpd seen in December.The cartel expects world oil demand to grow by 1.25 million bpd to94.21 million bpd this year, only a small downward adjustment from the previous forecast. Non-OPEC oil supply is projected to decline by 0.70 million bpd to average 56.28 million bpd.The International Energy Agency(IEA) said earlier this week that oil prices may fall further this year as the global oil surplus is likely to worsen thanks to increased output from Iran. The country produced 2.99 million bpd in January, a rise of about 80,000bpd from prior levels.Iran's Oil Minister Bijan Zangeneh said his country is open to begin talks with other OPEC members as conditions in the oil market continue to decline.The EIA cut its price forecast for WTI to $37.59 per barrel for this year,compared to the $38.54 projected a month ago. The price for Brent should average $37.52 a barrel this year, down from the previously expected $40.15 a barrel.