Extending its biggest weekly drop in more than a month, the West Texas Intermediate Oil dropped for a fourth day. The fall indicates another sign of rising the fuel supplies in the U.S and the weakness in the global economy.
WTI fell by 0.5 percent in New York, while manufacturers in China shrank unexpectedly. According to the data released by the government, the gasoline stockpiles in the U.S increased by 3 million barrels.
After the U.S, Crude stockpiles in China are the biggest oil-consuming country.
“The tone of the market remains soft,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “Growth in oil demand has been very moderate. This week’s figures in the U.S. were a bit disappointing with a big build-up in gasoline inventories as we start to move into the early part of summer, showing a well-supplied market.”
According to Bloomberg survey and calculations, WTI are expected to decline next week, while the speculations that the U.S fuel supplies will be sufficient to meet summer demands as global economic growth weaken.
According to HSBC Holdings PLC and Markit Economics, the Chinese Purchasing Managers index slid to 49.6 for May.
Gasoline for June fell 2.64 cents, to end the session at $2.8194 a gallon on the Nymex. It was the lowest since May 2. Trading volume was 25 percent above the 100-day average.