Oil extended its decline back below $30 a barrel before weekly U.S. government data forecast to show crude stockpiles expanded for a third week, exacerbating a global glut.

Futures slid as much as 2.4 percent in New York. Inventories probably increased by 4 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. Oil slumped 5.8 percent Monday after Saudi Arabia, the world’s biggest crude exporter, said low prices won’t reduce its spending on energy projects.

WTI for March delivery lost as much as 73 cents to $29.61 a barrel on the New York Mercantile Exchange and was at $29.81 at 8:25 a.m. Hong Kong time. The contract dropped $1.85 to $30.34 on Monday after the biggest two-day rally in more than seven years. Total volume traded was about 46 percent below the 100-day average.

Brent for March settlement declined $1.68, or 5.2 percent, to $30.50 a barrel on the London-based ICE Futures Europe exchange on Monday. The European benchmark crude ended the session at a premium of 16 cents to WTI.

Source: Bloomberg