Oil resumed its decline toward $37 a barrel before weekly U.S. crude inventory and production data.

Futures slid as much as 1.8 percent in New York, trimming Tuesday’s 2.9 percent gain. Stockpiles probably dropped by 2.5 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. That would still leave supplies more than 120 million barrels above the five-year seasonal average. The American Petroleum Institute was said to report inventories rose by 2.9 million barrels.

Crude is heading for a second annual loss on signs the global glut will be prolonged after the Organization of Petroleum Exporting Countries effectively abandoned output limits at a meeting earlier this month. Brent, the benchmark for more than half the world’s oil, is poised to end 2015 with the lowest annual average price in 11 years, hurting energy-exporting countries and companies.

West Texas Intermediate for February delivery fell as much as 69 cents to $37.18 a barrel on the New York Mercantile Exchange and was at $37.31 at 8:22 a.m. Hong Kong time. The contract gained $1.06 to $37.87 on Tuesday. The volume of all futures traded was about 18 percent below the 100-day average. Prices have decreased 30 percent this year.

Brent for February settlement climbed $1.17, or 3.2 percent, to $37.79 a barrel on the London-based ICE Futures Europe exchange on Tuesday. The European benchmark crude ended the session at a discount of 8 cents to WTI.

Source : Bloomberg