West Texas Intermediate and Brent crudes fell for a second day as the U.S. economy expanded at a slower pace in the fourth quarter than previously estimated.
Futures reduced monthly advances. Gross domestic product grew at a 2.4 percent annualized rate, compared with the 3.2 percent gain reported last month, revised figures from the Commerce Department showed. WTI has rallied more than 4 percent in February as supplies at Cushing, Oklahoma, dropped to a four-month low.
“The GDP report is weighing on the market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “WTI is going to trade between $100 and $104 until we see proof of strong economic growth. Prices had gained primarily because of Cushing inventories.”
WTI for April delivery fell 36 cents, or 0.4 percent, to $102.04 a barrel at 9:24 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 47 percent below the 100-day average. Prices are up 4.7 percent this month.