CM: Oil Falls a Second Day on Supply as Fed May Halt Stimulus: report
Oil dropped for a second day amid rising crude stockpiles and speculation the Federal Reserve may refrain from more monetary stimulus to boost the U.S. economy, Bloomberg reported. It said futures slipped as much as 1.2% in New York, extending yesterday's drop.
An American Petroleum Institute inventory report after the market closed showed an increase in crude supplies three times larger than analysts expect a separate report from the Energy Department to show later today. Federal Reserve minutes from a March policy meeting showed it plans to hold off from increasing monetary accommodation unless economic expansion falters.
Oil for May delivery declined as much as US$1.29 to US$102.72 a barrel in electronic trading on the New York Mercantile Exchange. It was at US$102.77 as of 1.21 p.m. London time after losing 1.2% yesterday. Crude has advanced 4.5% this year.
Brent oil for May settlement on the London-based ICE Futures Europe exchange fell as much as 81 cents, or 0.7%, to US$124.05 a barrel. The European benchmark contract was at a premium of US$21.31 to New York futures, compared with US$20.85 yesterday, the widest closing level since October.
