“Oil dropped for a second day in New York, extending last week’s 0.4 percent decline, on signs of a slowdown in demand as OPEC ministers arrived in Vienna to discuss production quotas.
Futures fell as much as 1.1 percent as the highest U.S. jobless rate this year fueled concern that the recovery in the world’s largest economy is faltering. The Organization of Petroleum Exporting Countries is unlikely to change targets when it meets June 8, according to a Bloomberg News survey of 30 analysts conducted in the week to May 31.
“We have been stuck in a range for a long time now with Libyan pressures seemingly passing away,” said Alexander Ridgers, London-based head of commodities at CMC Markets. “Around $99 seems like the right price. The current data coming out suggests a falloff in economic activity and a decrease in demand, but if this happens OPEC will tighten their supply.”
Crude for July delivery dropped as much as $1.10 to $99.12 a barrel in electronic trading on theNew York Mercantile Exchange and was at $99.41 at 11:05 a.m. London time. Prices are 39 percent higher the past year.
Brent crude for July delivery lost as much as $1.38, or 1.2 percent, to $114.46 a barrel on the London-based ICE Futures Europe exchange, and traded at $114.93 after climbing 30 cents, or 0.3 percent, on June 3. Prices are 59 percent higher in the past year.”
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