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West Texas Intermediate crude maintained losses and traded near the lowest level in almost four weeks after the Energy Information Administration reported U.S. inventories extended a record high.
Prices dropped for the first time in three days. Supplies gained 1.7 million barrels to 399.4 million in the week ended April 25, the Energy Information Administration reported. Analysts surveyed by Bloomberg had expected an increase of 2.2 million. WTI also slid as U.S. economic growth stalled in the first quarter. The U.S. grade widened its discount to Brent.
“Ample supplies are starting to weigh on the market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We have a lot of oil here in the U.S.”
WTI for June delivery fell $1.50, or 1.5 percent, to $99.78 a barrel at 10:33 a.m. on the New York Mercantile Exchange. Earlier, it touched $99.41, the lowest level since April 3. The volume of all futures traded was 20 percent above the 100-day average for the time of day. Prices were $99.50 before the EIA report was released at 10:30 a.m. WTI is heading for a 1.8 percent decrease in April, the most in five months.
Brent for June settlement slid $1.03, or 0.9 percent, to $107.95 a barrel on the London-based ICE Futures Europe exchange. Volume was 20 percent above the 100-day average. The European benchmark crude traded at a premium of $8.17 to WTI, compared with $7.70 yesterday.
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