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Crude Drops as US Output Reaches Record Since 1992

April 18, 2013 at 2:11 by Vladimir Vyun

Crude oil dropped today as US output reached the highest rate in more than 20 years. The Energy Information Administration reported that production was 7.2 million barrels per day, the record since 1992, while consumption declined. At the same time, inventories decreased by 1.2 million barrels to 387.6 million.

Disappointing earnings of US companies led to a drop of stocks and the Standard & Poor’s 500 Index tumbled as much as 2 percent, adding to the pressure on the market. The S&P’s GSCI Index of raw materials lost 1.8 percent, led by losses of metals and energy. The Organization of Petroleum Exporting Countries may conduct an emergency meeting if the price for Brent grade of oil slides below the $100 level.

May futures for delivery of WTI crude oil declined $0.9 (0.97 percent) to $$85.67 per barrel as of 2:06 GMT on NYMEX today. June contract for Brent crude slipped $0.82 (0.83 percent) to $100.39 per barrel on ICE.

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