West Texas Intermediate oil dropped the most in more than three months, widening the discount to Brent, on projections that a government report tomorrow will show that U.S. crude stockpiles climbed last week. WTI fell 2.1%. Crude supplies increased for the 13th time in 14 weeks, to 397.1 million barrels. WTI fell after Vice President Joe Biden expressed U.S. support for Ukraine during a visit to the capital Kiev, as an agreement with Russia to ease tension in the former Soviet republic’s east showed weakness. WTI for May delivery, which expired today, slid $2.24 to settle at $102.13 a barrel, capping the biggest drop since Jan.
The more-active June contract fell $1.90, or 1.8%, to $101.75. May’s premium to June closed at 38 cents, the smallest settlement this year for those two contracts. Trading was 35 percent above the 100-day average. Prices were little changed from the settlement after the American Petroleum Institute said U.S. crude inventories rose 519K barrels last week. June WTI traded at $101.84 in electronic trading, compared with $101.80 before the report was released.
For more reports, visit us at WWW.ICMBrokers.com