Oil Falls as U.S. Supply Rises Twice as Much as Forecast: report
Crude futures fell after the U.S. government reported a larger-than-expected supply gain amid speculation a slowing European economy may reduce demand, Bloomberg reported.
Prices dropped as much as 1.5% after the Energy Department said oil inventories rose 3.86 million barrels to 369 million last week. Supplies were forecast to grow 1.8 million barrels in a Bloomberg survey. Refinery utilization was 84.6%. Adam Posen, a Bank of England policy maker, ended support for more stimulus while bad loans surged in Spain.
Crude for May delivery slid US$1.42, or 1.4%, to US$102.78 a barrel at 11.19 a.m. on the New York Mercantile Exchange. Earlier, they touched US$102.64. Oil traded at US$103.64 a barrel before the release of the report at 10.30 a.m. in Washington. Prices have risen 4% this year.
Brent for June settlement fell US$1.81, or 1.5%, to US$116.97 a barrel on the London-based ICE Futures Europe exchange.
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