Oil traded near a two-day low in New York as investors looked beyond data showing a decline in U.S. crude stockpiles and bet that faltering economic growth will temper fuel demand. Futures fluctuated before a speech tomorrow by Federal Reserve Chairman Ben S. Bernanke, who may outline steps the central bank will take to stimulate the world’s largest economy. Standard Chartered Plc reduced its oil-price forecasts before a report that may show U.S. growth slowed in the second quarter. Crude inventories fell for a second week last week, U.S. government data showed yesterday. “Everyone’s sitting back and waiting to see what Bernanke has to say,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney, who predicts crude will average $100 a barrel this year. “A 2 million drop in crude stockpiles is neither here nor there.” Crude for October delivery was at $85.05 a barrel in electronic trading on the New York Mercantile Exchange, down 11 cents, at 12:37 p.m. Singapore time. Yesterday, the contract lost 28 cents to $85.16, the lowest since Aug. 22. Prices have gained 17 percent in the past year. Brent oil for October settlement on the London-based ICE Futures Europe exchange traded at $110.17 a barrel, up 2 cents. The European benchmark contract was at a premium of $25.10 to U.S. futures, down from a record $26.21 on Aug. 19. Crude Stockpiles U.S. crude inventories decreased 2.2 million barrels to 351.8 million in the week ended Aug. 19, according to the Energy Department. Supplies were forecast to increase 1.75 million barrels, based on the median estimate from analyst surveyed by Bloomberg News. Gasoline inventories climbed 1.36 million barrels to 211.4 million, as imports increased and refineries boosted processing rates to the highest in five weeks, the report showed. Standard Chartered lowered its third-quarter price forecasts on “weaker-than-expected” demand in the U.S. and speculation supply disruptions in the North Sea and West Africa will end. Brent may average $112 a barrel, down from an earlier estimate of $115, London-based analyst Helen Henton said in a report yesterday. New York crude may average $90, from $98. Earlier this week, BNP Paribas SA cut its 2012 price predictions and Morgan Stanley said a resumption in exports from Libya would trigger a reduction of its estimates. GDP Growth U.S. gross domestic product grew at a 1.1 percent annual pace in the second quarter, down from the 1.3 percent that the government estimated last month, according to a Bloomberg News survey of economists before a Commerce Department report tomorrow. Bernanke will deliver a speech to central bankers tomorrow at a meeting in Jackson Hole, Wyoming. Hurricane Irene was a Category 3 storm in the Atlantic and is forecast to approach North Carolina this weekend. It packed maximum winds of 120 miles (193 kilometers) per hour and may be upgraded today to Category 4, the second-most intense on the five-step Saffir-Simpson scale, the U.S. National Hurricane Center said in an advisory at 11 p.m. Miami time yesterday. The U.S. East Coast, known as the Padd 1 region, has 10 operating refineries with a capacity of 1.21 million barrels a day, based on Energy Department data. The area accounts for 7.1 percent of total U.S. operating capacity. To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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