Oil retreated as signs of a sharp increase in U.S. crude inventories and concerns over demand offset fears that rising violence in Venezuela will exacerbate a global supply crunch.
Futures in New York fell as much as 1.2 percent after rising 0.7 percent Tuesday. The industry-funded American Petroleum Institute was said to report U.S. stockpiles jumped 6.81 million barrels last week, much more than what government data due Wednesday is forecast to show. A gauge of manufacturingin top crude importer China fell in April, highlighting the toll a trade warbetween Beijing and Washington is taking on the world’s No. 2 economy.
West Texas Intermediate futures for June delivery declined as much as 74 cents to $63.17 a barrel on the New York Mercantile Exchange, and traded 1 percent lower at $63.29 at 1:19 p.m. Singapore time. Prices closed 41 cents higher at $63.91 on Tuesday.
Brent for July settlement was trading 47 cents, or 0.7 percent, lower at $71.59 a barrel on the London-based ICE Futures Europe exchange. The June contract expired on Tuesday after rising 1.1 percent to $72.80. The global benchmark crude was at a premium of $8.20 to WTI for the same month.
Source : Bloomberg