UPDATE 9-Oil drops on growing crude glut, doubts over output cuts

* U.S. crude stocks jump by 12 mln bbls in latest week -API
* U.S. crude stocks seen up 9.3 mln bbls in 11th weekly
build-poll
* U.S. pushes back on call by OPEC+ to join big oil output
cuts
* U.S. oil output to drop, demand to fall more than 1 mln
bpd-EIA
* For an interactive graphic tracking the global spread of
the
coronavirus open https://tmsnrt.rs/3aIRuz7 in external browser

(Adds U.S. crude oil storage inventory numbers)
By Laila Kearney
NEW YORK, April 7 (Reuters) - Oil slumped on Tuesday in the
face of swelling crude supplies and weak fuel demand due to the
coronavirus pandemic, while investors also grew cautious over
expectations that the world's biggest producers would quickly
agree on output cuts.
West Texas Intermediate (WTI) crude CLc1 futures settled
$2.45, or 9.4%, lower at $23.63 a barrel, accelerating their
losses late in the day, ahead of weekly U.S. crude oil inventory
reports. Brent crude futures LCOc1 settled at $31.87 a barrel,
losing $1.18, or 3.6%.
Data from the American Petroleum Institute, an industry
group, showed crude stocks surged by 11.9 million barrels last
week to 473.8 million barrels, compared with analysts'
expectations for a build of 9.3 million barrels. U.S. government oil inventory data comes out on Wednesday.
EIA/S
"I can't think of a scenario in any way shape or form where
that can be a bullish situation," said Bob Yawger, director of
energy futures at Mizuho. "It's going to be a gigantic crude oil
build, it's going to be a gigantic gasoline build."
The top global suppliers of crude, including Saudi Arabia
and Russia, plan to meet on Thursday to discuss reducing output,
but several energy ministers have said they will do so only if
the United States joins in with its own cuts, sources told
Reuters.
"The market is indicating that it wants some more certainty
on whether the Russians and Saudis will strike a deal to limit
supply," said Gene McGillian, vice president of market research
at Tradition Energy in Stamford, Connecticut.
On Tuesday, the U.S. Department of Energy, noting new
monthly forecasts, pointed out that production is already
dropping without government involvement. Any final agreement on how much the Organization of the
Petroleum Exporting Countries and its allies, known collectively
as OPEC+, will curb output would depend on volumes that
producers such as the United States, Canada and Brazil are
willing to cut, an OPEC source said on Tuesday. OPEC+ has been curtailing production in recent years even as
U.S. producers ramped up output to make the country the world's
biggest crude producer.
U.S. President Donald Trump on Monday said OPEC had not
asked him to push domestic oil producers to cut production to
buttress prices. He also said U.S. output was already declining
in response to falling prices.
U.S. crude production is expected to fall by 470,000 barrels
per day (bpd) and demand is set to drop by about 1.3 million bpd
in 2020, the U.S. Energy Information Administration (EIA) said.
L1N2BV16J
U.S. motor gasoline consumption will reach some of the
lowest levels in 20 years in the second quarter of 2020, it
said.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: Brent oil neutral in $32.04-$34.24 range U.S. oil remains neutral in $24.41-$27.58 range
crude oil forward curve from Jan through Apil 2020 IMAGE
https://reut.rs/2V3Zunb
Reuters Poll: Global GDP growth outlook for 2020 IMAGE https://reut.rs/2R9nxjw
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>