West Texas Intermediate declined for a second day before a report forecast to show crude stockpiles increased last week in the U.S., the world’s biggest consumer of the commodity.
Futures declined as much as 1.3 percent in New York. U.S. crude inventories probably rose by 550,000 barrels to 391.8 million last week, and U.S. gasoline supplies by 500,000 barrels to 219.3 million, according to a Bloomberg News survey before a report tomorrow from the Energy Information Administration. The Organization of Petroleum Exporting Countries raised crude output in May to the highest level in six months while keeping its demand forecast for 2013 unchanged.
“Fundamentals are still skewed towards oversupply, though there are some minor clouds on the horizon,” Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark.
WTI for July delivery fell by as much as $1.27 to $94.50 a barrel and was at $94.62 in electronic trading on the New York Mercantile Exchange as of 1:08 p.m. London time. The volume of all futures traded was 34 percent below the 100-day average. The contract settled at $95.77 a barrel yesterday, the lowest close since June 6.
Brent for July settlement decreased $1.43 to $102.52 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade’s premium to WTI shrank to as little as $7.74 a barrel today, the narrowest gap since May 22.
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