West Texas Intermediate extended declines from the lowest price in more than 17 months before a report that may show crude stockpiles rose in the U.S., the world’s biggest oil consumer. Brent dropped in London. Futures slid as much as 1.6 percent in New York, falling for a second day. Crude inventoriesprobably expanded by 2 million barrels last week, according to a Bloomberg News survey before data from the Energy Information Administration today. The EIA, the Energy Department’s statistical arm, cut its price forecasts in a monthly report yesterday, citing increased output and reduced demand. “It’s still the same supply scenario,” David Lennox, a resource analyst at Fat Prophets in Sydney, said by phone. “Demand is weak, and OPEC has been producing above the 30 million-barrel level.” WTI for November delivery decreased as much as $1.46 to $87.39 a barrel in electronic trading on the New York Mercantile Exchange and was at $87.84 at 3 p.m. Singapore time. The contract dropped $1.49 to $88.85 yesterday, the lowest close since April 2013. The volume of all futures traded was double the 100-day average. Prices have declined 11 percent this year. Brent for November settlement slid as much as $1.35, or 1.5 percent, to $90.76 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $3.09 to WTI, compared with $3.26 yesterday.Crude Stockpiles WTI fell 4.1 percent last week, the most in two months, as the Organization of Petroleum Exporting Countries boosted production in September to the highest level since August 2013. U.S. crude inventories climbed by 5.1 million barrels in the week ended Oct. 3, the industry-funded American Petroleum Institute reported yesterday, according to Bain Energy. Gasoline supplies probably shrank by 500,000 barrels last week, based on the median estimate in the Bloomberg survey of 10 analysts before the EIA report. Distillate inventories, including diesel and heating oil, are projected to have decreased by 1.25 million. WTI will average $94.58 a barrel in 2015 versus a September prediction of $94.67, the EIA said in its monthly Short-Term Energy Outlook yesterday. The agency reduced its Brent estimate for next year to $101.67, from $103. The world economy will expand by 3.8 percent next year, compared with a July forecast for 4 percent, after a 3.3 percent gain this year, the Washington-based International Monetary Fund said in a separate report yesterday. “The IMF report suggests more economic weakness, and more economic weakness means demand stays soft,” said Bill O’Grady, the chief market strategist at Confluence Investment Management in St. Louis. Brent’s 14-day relative strength index is at about 23 today, data compiled by Bloomberg show. That’s a seventh day below 30, signaling that the market is oversold and further losses probably can’t be sustained. http://www.bloomberg.com/news/2014-10-07/wti-exten...