West Texas Intermediate fell as a technical indicator shows last week’s increase to the highest price in nine months was excessive. Futures slid as much as 0.4 percent in New York. WTI’s relative strength index closed above 70 for a third day yesterday, signaling prices rose too quickly to sustain further gains. Iraq’s army pummeled the positions of Sunni Muslim insurgents who have captured large chunks of territory in the country’s north as the U.S. weighed a military intervention to help the government. WTI for July delivery fell as much as 46 cents to $106.44 a barrel in electronic trading on the New York Mercantile Exchange and was at $106.54 at 4 p.m. Sydney time. The contract lost 1 cent yesterday after ending last week’s trading at $106.91, the highest close for the front month since Sept. 18.
The volume of all futures traded was about 4% above the 100-day average. Prices are up 8.3% this year. In the U.S., crude inventories probably shrank by 750,000 barrels in the week ended June 13, according to the projections before an EIA report tomorrow. Supplies decreased the prior two weeks to 386.9 million barrels, according to the Energy Department’s statistical arm. Gasoline stockpiles slid by 550K barrels last week while distillates, including heating oil and diesel, expanded by 350K barrels, expectations said. The industry-funded American Petroleum Institute in Washington is scheduled to release its own supply data today.
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