Oil extends losses after 4% tumble on signs surplus has arrived

Oil extended a decline after slumping on Wednesday on a flurry of signs that a long-awaited surplus has finally arrived.

West Texas Intermediate dropped toward $58 a barrel, after plummeting more than 4% in the previous session, while Brent closed below $63 . Producer group OPEC — which has been restoring idled capacity this year — said that global supplies ran ahead of demand in the third quarter.

Elsewhere, a key market indicator — WTI’s prompt spread — flipped briefly into contango, a pricing pattern that signals ample near-term supplies, and the US Energy Information Administration raised its US production forecast for next year. More bearish signals may come later Thursday when the International Energy Agency issues its monthly report.

Crude has retreated this year on widespread