West Texas Intermediate dropped for a second day as crude stockpiles increased for the first time in five weeks in the U.S., the world’s biggest oil consumer. Brent declined in London.
Futures slid as much as 0.9 percent in New York. Crude inventories expanded by 3.67 million barrels to 362.3 million last week, a report from the Energy Information Administration showed yesterday. Supplies were forecast to fall by 1.5 million, according a Bloomberg News survey. The dollar rose after the Fed raised its target-rate forecast.
“The surprise increase is adding weight to the market,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney who predicts investors may buy West Texas contracts if prices drop to about $91.50 a barrel. “The Fed commentary with the raised interest-rate expectations fed directly into the currency markets, and that’s putting pressure on commodities.”