WTI oil futures hold near 6-year low as U.S. stockpiles surge

Investing.com - West Texas Intermediate oil futures traded near the lowest level in six years on Thursday, after data showed that oil supplies in the U.S. rose to the highest level since 1982, exacerbating fears over a glut in supplies.

On the New York Mercantile Exchange, crude oil for delivery in March lost 6 cents, or 0.13%, to trade at $44.39 a barrel during European morning hours. Prices held in a range between $44.23 and $44.63.

A day earlier, New York-traded oil futures hit $44.08, a level not seen since March 2009, before settling at $44.45, down $1.78, or 3.85%.

The U.S. Energy Information Administration said that U.S. crude oil inventories rose by 8.9 million barrels last week to 406.7 million, the most in records dating back to August 1982.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery inched up 14 cents, or 0.3%, to trade at $48.62 a barrel. On Wednesday, Brent for March delivery dropped $1.13, or 2.28%, to close at $48.47.

Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.1% to 94.98, holding below last Friday’s more than 11-year highs of 95.77.

A stronger U.S. dollar usually weighs on oil, as it makes dollar-priced commodities more expensive for holders of other currencies.

Later in the day, the U.S. was to publish the weekly report on initial jobless claims as well as private sector data on pending home sales.

On Friday, the country will release preliminary data on fourth quarter growth, which is expected to show expansion of 3.0%.

Following its policy meeting on Wednesday, the Federal Reserve said it would keep rates on hold at least until June and reiterated its pledge to be "patient" on raising interest rates, while acknowledging the solid economic recovery and strong growth in the labor market.

Meanwhile, the euro remained under pressure after Greece’s new government moved Wednesday to roll back deeply unpopular austerity policies underpinning the county’s €240 billion international bailout, fuelling fears over a clash with its international creditors.