West Texas Intermediate oil fell for a second day on speculation a report will show that U.S. crude supplies rose to the highest level in more than 22 years.
Futures declined as much as 1.2 percent before the release of government data tomorrow that’s projected to show stockpiles climbed by 1.75 million barrels last week, according to a Bloomberg survey of analysts. Exxon (XOM) Mobil Corp. is developing a plan to repair a leak that shut the Pegasus pipeline system, which moves oil to Gulf Coast refineries from the central U.S.
“There’s no doubt that there’s oil aplenty in the U.S.,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “The rise in U.S. oil output is changing the world energy picture dramatically. The only problem we have is shipping it from place to place, which is why we’re paying attention to the pipeline closure.”
WTI oil for May delivery dropped 84 cents, or 0.9 percent, to $96.23 a barrel at 9:42 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 27 percent above the 100-day average for the time of day.
Brent for May settlement decreased 48 cents, or 0.4 percent, to $110.60 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 1.9 percent higher than the 100-day average.
The European benchmark grade traded at a $14.37 premium to WTI futures, compared with $14.01 yesterday and $12.79 March 28.
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