“West Texas Intermediate crude fell for the first time in four days before government data that may show U.S. stockpiles rose from an 82-year high. Saudi Arabia increased production to the most in five months.
Futures slid as much as 0.9 percent in New York after the biggest three-day gain since the first week of August. U.S. crude supplies probably climbed by 2 million barrels last week, according to a Bloomberg News survey before the Energy Information Administration report tomorrow. Saudi Arabia raised output to 9.32 million barrels a day in April, a person with knowledge of the country’s production said. China’s external trade probably slowed last month, a separate survey showed.
“We are probably going to be presented with another weekly inventory rise from the U.S. tomorrow, and that obviously does bring the focus that the market is still well supplied,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said in a telephone interview. “Whether we are ready to see a return toward the $110 level, which is the average for the last few years, it’s probably too early to say.”
WTI for June delivery declined as much as 90 cents to $95.26 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.66 at 10:38 a.m. London time. The volume of contracts traded was little changed from the 100-day average. Futures climbed 55 cents to $96.16 yesterday, the highest close since April 2, capping a three-day gain of 5.6 percent.