“Oil dropped for a second day in New York on concern Greece’s debt crisis will curb European growth and as analysts predicted U.S. fuel inventories will rise, signaling lower demand.
Futures fell as much as 0.6 percent after declining to the lowest in more than a week yesterday.Europe will consider extending Greece’s debt-repayment schedule as part of a package including deeper spending cuts, Luxembourg Prime Minister Jean- Claude Juncker said in Brussels. An Energy Department report tomorrow may show U.S. crude stockpiles rose for a fourth week.
“The concerns in Europe are going to create a lack of confidence again,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney, who predicted oil will average $100 this year. “People will pull the horns in from spending. That feeds back into the demand prospects for crude. We’ve also still got a fair few barrels in the U.S.”
Crude for June delivery slipped as much as 61 cents to $96.76 a barrel in electronic trading on the New York Mercantile Exchange and was at $97.19 at 12:48 p.m. Singapore time. Oil fell $2.28, or 2.3 percent, yesterday to $97.37, the lowest since May 6. Prices are 39 percent higher in the past year.
