Crude Oil Falls on Swelling Stockpiles & Economic Slowdown
Crude oil fell on speculation that US inventories will advance to a highest level in 21 years. Analysts estimated that stockpiles climbed 2.5 million barrels to 375.5 million last week. The report from the Energy Department will be released tomorrow.
Demand for oil may wane as the global economic growth is slowing. Reports showed that manufacturing in China rose less than expected and business activity in the United States slowed. Spain’s gross domestic product fell 0.3 percent in the first quarter of this year, following the same rate of decline in the previous quarter. Two quarters of economic decline means the country has entered the recession.
Futures for delivery of crude in June fell $0.15 to $104.72 per barrel on NYMEX. Brent crude dropped from $119.65 to $119.47 per barrel yesterday on ICE and traded today at about $119.28.
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