Oil Falls for First Time in Four Days After Supply Gain
March 28, 2012 by Gold Editor
SOURCE: [Bloomberg] - Kevin Book, managing director at ClearView Energy Partners LLC, talks about the outlook for oil prices and the U.S. Senate decision to consider legislation that would repeal oil-industry tax breaks. Book speaks on Bloomberg Television's "InBusiness With Margaret Brennan." (Source: Bloomberg)
“The chatter about a reserve release appears to be an attempt to talk down the market,” said Frank Verrastro, director of the energy and national security program at the Center for Strategic and International Studies in Washington. “It’s clear that the market is adequately supplied.”
Crude oil for May delivery declined $1.92 to $105.41 a barrel on the New York Mercantile Exchange, the lowest settlement since March 22. Prices are up 6.7 percent this year.
Brent oil for May settlement dropped $1.46, or 1.2 percent, to $124.08 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate crude traded in New York increased to $18.67 from $18.21 yesterday. Brent is up 16 percent in 2012.
Crude oil stockpiles rose for the fifth time in six weeks to the highest level since August. A gain of 2.55 million was projected, according to the median of 12 analyst responses in a Bloomberg News survey.
“The balance is trending to a surplus, a pretty significant surplus,” said Sarah Emerson, managing director of Energy Security Analysis Inc. in Wakefield, Massachusetts.