Oil fell from the lowest settlement in almost five months in New York before reports that may show U.S. crude stockpiles rose to the highest level in 21 years and Europe’s economy shrank.
Futures slid as much as 0.9 percent, declining for the ninth time in 10 days. U.S. crude stockpiles probably climbed 1.5 million barrels last week to 381 million, the most since August 1990, according to a Bloomberg News survey before government data tomorrow. Europe’s economy contracted last quarter for the first time since the final three months of 2009, a separate survey showed before a report today.
“There’s nothing in the oil market that is giving support,” said Jeremy Friesen, a commodity strategist at Societe Generale in Hong Kong. “Clearly people are going to focus on rising oil stocks in the U.S. It’s expected prices would fall as inventories build to these levels.”
Crude for June delivery fell as much as 87 cents to $93.91 a barrel in electronic trading on the New York Mercantile Exchange and was at $94.28 at 10:21 a.m. Singapore time. Prices dropped 1.4 percent to $94.78 yesterday, the lowest close since Dec. 19, and are down 4.6 percent this year.
Brent for June settlement slid 45 cents, or 0.4 percent, to $111.12 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate was $16.84, compared with $16.79 yesterday and the highest gap based on closing prices since April 13.
Futures slid as much as 0.9 percent, declining for the ninth time in 10 days. U.S. crude stockpiles probably climbed 1.5 million barrels last week to 381 million, the most since August 1990, according to a Bloomberg News survey before government data tomorrow. Europe’s economy contracted last quarter for the first time since the final three months of 2009, a separate survey showed before a report today.
“There’s nothing in the oil market that is giving support,” said Jeremy Friesen, a commodity strategist at Societe Generale in Hong Kong. “Clearly people are going to focus on rising oil stocks in the U.S. It’s expected prices would fall as inventories build to these levels.”
Crude for June delivery fell as much as 87 cents to $93.91 a barrel in electronic trading on the New York Mercantile Exchange and was at $94.28 at 10:21 a.m. Singapore time. Prices dropped 1.4 percent to $94.78 yesterday, the lowest close since Dec. 19, and are down 4.6 percent this year.
Brent for June settlement slid 45 cents, or 0.4 percent, to $111.12 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate was $16.84, compared with $16.79 yesterday and the highest gap based on closing prices since April 13.
TODAY ON 16 MAY 2012 HAS MADE NEW LOW @ $92.54
ReplyDeleteCRUDE OIL BROKE $91 ALSO AND MADE THE NEW LOW @ $90.90 YESTERDAY ON 18 MAY 2012.
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