“Oil in New York for the second time in three days after France said industrialized nations are considering a release from strategic stockpiles and a report showed Chinese manufacturing may contract.
Futures dropped as much as 1.5 percent after French Industry Minister Eric Besson said the country is “studying with its partners all possible options,” including the supply of oil from emergency reserves. Manufacturing in China, the world’s second-largest oil consumer, may decline for a fifth month in March, according to a report today from HSBC Holdings Plc and Markit Economics.
“There is no motivation for buying,” said Gerrit Zambo, a trader at Bayerische Landesbank in Munich. “People are becoming a bit cautious because it is more or less clear that Iran doesn’t want to get into war with anyone, and talk of releasing strategic stocks is bearish.”
Crude for May delivery slid as much as $1.60 to $105.67 a barrel in electronic trading on the New York Mercantile Exchange. It was at $106.04 at 11:21 a.m. London time. The contract gained $1.20 yesterday to $107.27, the highest close since March 19. Prices are 7.3 percent higher this year.
Brent oil for May settlement on the London-based ICE Futures Europe exchange declined as much as $1.22, or 1 percent, to $122.98 a barrel. The European benchmark contract was at apremium of $17.25 to New York futures. The difference was $16.93 at yesterday’s close, the smallest in three weeks….”
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