West Texas Intermediate slid from a three week high after government data showed U.S. crude inventories expanded as production increased to a 28 year peak. Futures fell as much as 0.6% in New York, the first drop in four days. Crude stockpiles rose to a near record last week as output climbed to the most since 1986, the Energy Information Administration reported earlier this week.
Yesterday, WTI for June delivery declined as much as 63 cents to $101.74 a barrel in electronic trading and was at $102.09, the highest close since April 21. The volume of all futures traded was about 49% above the 100-day average for the time of day. Today, WTI ranged a $0.50 during the morning session recording $102.04 per barrel as the highest price to drop to $101.50 per barrel as the lowest trading price for the session.
WTI may drop next week amid speculation U.S. crude inventories at near-record levels expanded further, a Bloomberg News survey shows. Twelve of 29 analysts and traders, or 41 percent, said futures will decline through May 23 while 10 respondents predict a gain.
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