Crude oil declined on increasing supply. American Petroleum Institute estimated that US inventories of crude grew by 5.2 million barrels to 388.4 million last week. Oil production by the Organization of Petroleum Exporting Countries increased by 194,000 barrels in April.
With ample supply, it is not surprise that prices were down. Furthermore, traders were worried that signs of economic slowdown may hurt demand. The Chicago Purchasing Managers’ Index dropped from 52.4 in March to 49.0 in April. This is compared to the analysts’ estimates of 52.5.
June futures for delivery of WTI crude oil dropped $0.26 (0.28 percent) to $93.20 per barrel as of 00:12 GMT on NYMEX today. Contract for delivery of Brent crude slid $1.44 (1.39 percent) to $102.37 per barrel on ICE.
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