Oil prices slid further on Wednesday after Saudi Arabia dismissed the possibility of a production cut and traders expected another increase in U.S. oil stockpiles.

Brent crude LCO6J -2.16%  on London’s ICE Futures exchange fell $0.79, or 2.4%, to $32.47 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April CL6J -2.95%  traded down 2.4, or $0.80, at $30.75 a barrel. Both benchmarks lost more than 4% on Tuesday.

Late Tuesday, the American Petroleum Institute, an industry group, said that U.S. stockpiles increased by more-than-expected 7.1-million-barrel last week. The Energy Information Administration will release its official data later on Wednesday and analysts polled by The Wall Street Journal expect an increase of 2.4 million barrels.

Last week, oil prices rallied after Saudi Arabia, and other oil majors Russia, Qatar and Venezuela, agreed to cap their future productions at the January levels in a bid to support prices. However, hopes that the global glut would ebb quickly dimmed, and prices weakened after Iran rebuffed the pact.

“With Saudi Arabia unwilling to cut and Iran unwilling to freeze production, the oil market is set to remain in limbo in the short-term,” said Carsten Menke, analyst at Julius Baer.

Tehran has repeatedly said it wouldn’t consider a supply reduction until its production has climbed back to its pre-sanction level, which was around 4 million barrels a day. Iran is currently producing just under three million barrels a day. On Tuesday, Iran’s oil minister called the plan to freeze output “a joke.”

On Wednesday, Iraq’s OPEC Governor Faleh al-Amri said that his country “does not want to flood the market.” He added that the country is still planning to increase its production to 6 million barrels a day by 2020, but will do it steadily.

If a freeze in output is all the market can hope for and Iran, Libya, and Iraq will not comply, “then instead of hearing the sound of the market adjusting to lower prices, OPEC and Russia may hear nothing more than the sound of silence,” Barclays said.

Oil prices have been battered by oversupply and slower demand growth for nearly two years. Still, major producers have kept pumping at near-record rates in a bid to secure their market share.

In the U.S., where new technologies to extract shale oil have revolutionized the energy industry, oil production has fallen from a peak of 9.7 million barrels a day but kept stable around 9.2 million barrels in recent months. The EIA will release its latest weekly estimate of U.S. crude oil output later on Wednesday.

Nymex reformulated gasoline blendstock--the benchmark gasoline contract--fell 0.6% to $1.22 a gallon. ICE gasoil changed hands at $300.25 a metric ton, down $1.75 from the previous settlement.

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