(MENAFN- AFP) Oil plunged Thursday before the release of a closely-watched report that is expected to show a surge in US stockpiles to a 33-year high, adding to a global supply glut.
US benchmark West Texas Intermediate for delivery in March dived $2.07 to $50.07 per barrel compared with Wednesday's close.
Brent North Sea crude for April delivery slid $1.55 to stand at $58.98 a barrel in London early afternoon deals.
"Activity this morning has seen prices ... sharply lower as WTI futures test tentative support around $50," said Sucden analyst Kash Kamal.
"With the release of official EIA energy stockpile data, initial weekly jobless claims (and) the Philly Fed business outlook reading ... investors will have plenty to keep themselves busy with today."
The weekly report by the Energy Information Administration (EIA) is expected to show supplies increased by three million barrels to 420.9 million in the week through February 13, according to a survey by Bloomberg News.
The figure from the EIA -- part of the US Department of Energy -- would mark the highest in weekly records since August 1982, Bloomberg said.
Ken Hasegawa, energy desk manager at Newedge brokerage in Japan, said the expected jump in stockpiles was "having negative impact on the market".
Last week's report showed that US crude inventories already reached their highest levels on record for this time of the year.
Crude prices lost about 60 percent of their value to around $40 per barrel between June and late January owing to an oversupply in world markets, a weak global economy and a strong dollar.
And while prices have been climbing in recent weeks on news that the number of US oil rigs in operation has fallen and energy giants are cutting back on investment, markets-watchers say volatility is likely to continue for some time
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