MW: Crude drops nearly 3% as excessive supplies weigh
Crude-oil futures fell Monday for the first session in four, declining from their highest level in six months on worries that the recent rally will be reversed by rising oil inventories. Crude for June delivery fell $1.68, or 2.9%, to $56.95 a barrel in early North American electronic trading. It rallied more than 10% last week, despite government data showing U.S. crude inventories rose to the highest level in nearly 19 years. "While crude has seen some buying lately, the fundamentals are definitely bearish," said Tariq Zahir, managing member at futures trading firm Tyche Capital Advisors.
