BLBG:Crude Futures Drop on Greek Austerity Vote, Rising U.S. Supply
Oil fell from a two-week high in New York amid speculation that U.S. crude inventories rose last week and as Greece prepared to vote on austerity measures.
Futures slid as much as 1 percent after surging 3.6 percent yesterday. Greek parliamentarians will vote later today on proposed spending cuts amid concern that Europe’s debt crisis may curb demand for fuels. U.S. oil stockpiles probably increased last week for a fourth time in five weeks, an Energy Department report may show today.
“Oil’s drop is reflecting some caution ahead of the Greek vote tonight,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “There is concern that the austerity package will not pass the parliament and Greek will default as a result.”
West Texas Intermediate for December delivery dropped as much as 84 cents to $87.87 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.34 at 9:09 a.m. London time. The contract rose $3.06 yesterday to $88.71, the highest close since Oct. 22. Prices have declined 11 percent this year.
Brent for December settlement slid 40 cents to $110.67 a barrel on the ICE Futures Europe exchange. The contract climbed 3.1 percent yesterday. The European benchmark crude was at a premium of $22.37 to New York-traded WTI, compared with $22.36 yesterday.
To contact the reporter on this story: Ayesha Daya in Dubai at adaya1@bloomberg.net
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