Crude Oil Falls to Eight-Week Low on Bets Supplies May Increase

January 25, 2011, 8:37 AM EST
By Grant Smith

Jan. 25 (Bloomberg) -- Crude oil fell to its lowest in almost eight weeks amid speculation OPEC may boost output and before a U.S. report that may show supplies in the world’s biggest crude user rose last week.

An Energy Department report tomorrow will probably show U.S. crude inventories climbed 1.25 million barrels last week, according to a Bloomberg News survey. Futures dropped 1.4 percent yesterday after Saudi Arabian Oil Minister Ali al-Naimi said some members of the Organization of Petroleum Exporting Countries may increase production capacity to maintain the global “supply-demand balance.â€