West Texas Intermediate dropped for a fourth day and slipped below $100 as gasoline stockpiles rose and demand declined in the U.S., the world’s biggest oil user. Brent decreased in London.
Futures fell as much as 1.1 percent in New York. Gasoline supplies expanded by 365,000 barrels last week to 218.2 million, the highest level in four months, the Energy Information Administration said yesterday. Average consumption shrank 0.5 percent over the past four weeks to the lowest since May, even as the country’s peak driving season started with the Memorial Day holiday on May 26.
“This should be a period of peak demand,” said Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney. “The price action is telling us the world does not have an issue with the supply of crude. Oil at $100 is a big level, and I don’t think it will give it up so quickly.”