Oil Slick: Data Signals A Supply Glut

Global oil markets extended declines Wednesday as investors trimmed price expectations amid increasing signs that the current supply glut will continue to weigh on sentiment.

The declines followed data from OPEC Tuesday which indicated that member states increased production last month, despite reaching an agreement to trim output. In its regular Monthly Oil Market Report, OPEC said its May crude output pace rose by 336,000 barrels per day to just over 32.1 million. The figures added to market pressure after a report from the American Petroleum Institute that estimated domestic crude stocks rose by a more-than-expected 2.8 million barrels in the week ending June 9.

This article was written by a staff member of TheStreet.