Oil Prices Hit Six Year Low

Oil prices fell to six-year lows on Monday in the face of concerns that a glut in the United States was outpacing already-brimming storage facilities.

Additionally, the Organization of the Petroleum Exporting Countries published a report suggesting that the cartel remained reluctant to intervene to prop up prices.

The direction of oil prices, which had risen sharply from January lows, has fallen back in recent days. Traders are now focused on the second quarter of the year, when demand for oil is traditionally weak because of the end of winter and scheduled refinery shutdowns for maintenance.

On Monday, the price of West Texas Intermediate crude, the main United States benchmark, fell about 2 percent to about $44 a barrel, a six-year low, while Brent crude, the international benchmark, fell by about 2 percent to about $53 a barrel.

On Monday, crude oil for April delivery slid 96 cents, or 2.1%, to $43.88 a barrel on the New York Mercantile Exchange, down five consecutive trading sessions and the lowest level since March 2009. Brent crude, the global benchmark, fell $1.23, or 2.2%, to settle at $53.44 a barrel on ICE Futures Europe, a six-week low.

Nationwide, U.S. crude stockpiles already stand at a record, and inventories at Cushing are nearing one, according to data from the U.S. Energy Information Administration. Genscape doesn’t release its data publicly. The EIA is scheduled to provide its next weekly update on U.S. crude supplies Wednesday.

Rising oil supplies have spurred concerns that storage capacity in some regions will fill up. In that situation, some buyers may have to stop buying crude for lack of a place to stash it. That could precipitate further price declines.

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