“Oil dropped from a two-week high on speculation that the earlier price increase wasn’t supported by the pace of economic recovery.
Futures reached their highest since May 11 earlier today after a U.S. Energy Department report yesterday showed supplies of diesel and heating oil fell to their lowest since April 2009. The data also showed inventories of gasoline increased by the most since February. U.S. durable goods orders fell more than forecast in April, a Commerce Department report showed.
“Yesterday’s data was more bullish for products than for crude, but still not bullish enough to say that fundamentals are tight,” said Gerrit Zambo, a trader at Bayerische Landesbank in Munich. “In the last weeks we’ve seen macroeconomic data worse than expected. The oil demand-supply situation is relaxed, and there’s no danger of any shortage.”
Crude for July delivery on the New York Mercantile Exchange was down 47 cents, or 0.5 percent, at $100.85 a barrel at 10:39 a.m. London time, after gaining as much as 58 cents to $101.90. Brent crude for July settlement fell 68 cents to $114.25 a barrel on the ICE Futures Europe exchange in London. The contract yesterday climbed $2.40, or 2.1 percent, to $114.93, the highest settlement since May 10.”
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