“Brent crude fell below $100 a barrel for the first time since July amid signs global economic growth may slow, curbing fuel demand. West Texas Intermediate declined to a four-month low on speculation U.S. supplies rose.
Brent futures slid as much as 2.6 percent to $98 a barrel, while WTI dropped to the lowest intraday price since Dec. 14. German investor confidence declined more than economists forecast in April. U.S. crude stockpiles probably climbed 1.5 million barrels last week to 390.4 million, the highest since July 1990, according to a Bloomberg survey before a government report tomorrow.
“As with many times in the past, oil has been used as the tool to express concerns about the macro economy and we are in the same situation now,” said Amrita Sen, chief oil market analyst at Energy Aspects Ltd., a research company in London, who predicted on April 8 that Brent may soon drop to $100. “Brent has been under pressure due to an improvement in supplies and a lack of demand.”
Brent for June settlement fell as much as $2.63 on the London-based ICE Futures Europe exchange, and recovered to $99.87 as of 11:48 a.m. local time. The volume of all futures traded was 70 percent higher than the 100-day average for the time of day. Prices are down 10 percent this year after four annual gains. The front-month European benchmark grade was at a premium of $11.24 to WTI.
OPEC Basket
WTI for May delivery slipped as much as $2.65 to $86.06 a barrel in electronic trading on theNew York Mercantile Exchange. Prices are down a fourth day, the longest run of declines this year. The volume of all futures traded was more almost three times higher than the 100-day average. The contract fell $2.58 to $88.71 yesterday, the lowest close since Dec. 24….”
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