Oil futures have dropped Movement.down.loss due to concern Negative_sentiment about softening Slow.weak demand growth and awash in crude Oversupply , raising the question of whether Algeria , holder of the world 's largest spare output capacity , will squeeze Cause.movement.down.loss output .

Analysts were expecting oil stockpiles to rise Movement.up.gain by 1.350 million barrels last week , and the supply data fueled the selloff by confirming fears the U.S. economy is awash in crude Oversupply .