“Brent crude fell for a second day after OPEC’s production increased to a five-month high and an industry group said U.S. stockpiles climbed for the first time in three weeks.
Futures slid as much as 1.8 percent in London after dropping 1.4 percent yesterday. U.S. crude inventories rose by 5.2 million barrels last week, the American Petroleum Institute said. Government figures today are projected to show a gain of 1.1 million barrels, according to a Bloomberg News survey. Daily output by the Organization of Petroleum Exporting Countries increased in April by 194,000 barrels a day, a separate survey indicated. An index of manufacturing in China signaled weaker expansion in April.
“With inventories at the levels they are at, it is a question of how much demand there is, and there is growing evidence of a slowdown in economic activity with even China weaker than expected,” Michael Hewson, a market analyst at CMC Markets Plc in London, said today by telephone. “The direction of travel on oil is down, and I see no reason to change that view unless OPEC cuts production.”
Brent for June settlement slid as much as $1.83 to $100.54 a barrel on the London-based ICE Futures Europe exchange, the lowest intra-day level in a week, and was at $100.58 at 1:21 p.m. local time. Futures fell $1.44 to $102.37 yesterday, capping a 7 percent drop for April. Trading was 2 percent above the 100-day average for the time of day. Prices are down 9.5 percent this year.
Cushing Supplies
West Texas Intermediate for June delivery declined as much as $1.79 to $91.67 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.81 at the same time today. Front-month Brent was at a premium of $8.73 to WTI, the narrowest gap since Dec. 30, 2011…..”
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