West Texas Intermediate fell for a second day after snapping the longest rising streak in almost four months. U.S. government data tomorrow is forecast to show crude stockpiles dropped to the lowest level since September. Futures slid as much as 1 percent in New York after failing to breach technical resistance yesterday along a downward-sloping trend line, according to data compiled by Bloomberg. Crude inventories probably shrank by 1.25 million barrels to 359.2 million last week, a survey showed before a report from the Energy Information Administration. Societe Generale SA maintained its Brent price forecasts. “There are a number of reasons for the market to be a little cautious,� said Michael McCarthy, a chief market strategist at CMC Markets in Sydney. “We have the inventory numbers,� and the publication of the July minutes from the Federal Open Market Committee on Aug. 22, “which is going to speak directly to the U.S. economy,� he said. WTI for September delivery, which expires today, declined as much as $1.09 to $106.01 a barrel in electronic trading on the New York Mercantile Exchange as of 2:40 p.m. in Singapore. The volume of all futures traded was about 18 percent below the 100-day average. The contract closed yesterday at $107.10, snapping a six-day rally that was the longest since April 25. The more active October future was down 73 cents at $106.13. Brent for October settlement decreased as much as 93 cents, or 0.9 percent, to $108.97 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $3.09 to WTI futures for the same month. The spread narrowed for a second day yesterday to $3.04. Downtrend Line WTI yesterday halted an intraday advance near the downtrend line that connects the intraday highs of July 19 and Aug. 2, which is at $108.22 a barrel today. Sell orders tend to be clustered around chart-resistance levels. U.S. gasoline stockpiles probably fell by 1.25 million barrels in the week ended Aug. 16, according to the median estimate of 10 analysts surveyed by Bloomberg. Distillate inventories, a category that includes heating oil and diesel, are expected to have gained by 750,000 barrels. Refinery operating rates probably dropped by 0.55 percentage point, the survey shows. U.S. refiners typically boost output to meet increased motor fuel demand during the so-called summer driving season from late May to early September. Libyan Output The American Petroleum Institute is scheduled to release separate inventory data today. The industry group in Washington collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the EIA, the Energy Department’s statistical arm, for its weekly survey. Brent crude will average $111 a barrel in the third quarter, according to Societe Generale, which also maintained its fourth-quarter and 2014 projections. Disruptions to Libya’s oil supply have had a “muted� impact on prices because the market is heading into a period of seasonally lower refinery runs, said Mike Wittner, a New York-based analyst at the bank. Libya has declared force majeure at four oil ports after security guards went on strike. State-run National Oil Corp. halted exports of crude and refined products from the Es Sider, Ras Lanuf, Zueitina and El Brega terminals, according to a document dated Aug. 18 obtained by Bloomberg. Suppliers may invoke such a legal clause when they misses shipments because of circumstances beyond their control. The country produced 800,000 barrels a day of crude last month, half the rate a year earlier, according to a Bloomberg survey of output from the 12-member Organization of Petroleum Exporting Countries. Libya holds Africa’s largest oil reserves. 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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