Crude oil falls for sixth day in longest drop since July 2010
Oil fell for a sixth day in New York this morning, marking the longest run of declines in almost two years, after crude stockpiles increased in the United States, the world's largest consumer of the commodity. Futures slid as much as 0.9% in trading early today, after dropping 8.6% over the past five days. U.S. inventories climbed 7.8 million barrels last week to 378 million, the highest level since August 1990, the American Petroleum Institute reports. A government report to be released later today may show supplies rose 2 million barrels, according to a Bloomberg News survey. However, crude is poised to rebound as global refiners increase purchases, Societé Generale SA says in a report. "U.S. inventory levels are preventing oil [from] having the traditional dead-cat bounce after such a steep fall," says Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London, who predicts prices will recover this month. "The lows we've seen this week will probably hold, and crude will likely rise as buying by funds and weakness in the dollar assist with a recovery." Crude for June delivery fell as much as 82 cents to $96.19 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.30 at 10:53 a.m. London time. It slipped 1% yesterday to $97.01, the lowest close since Feb. 6. The six-day decline is the longest since July 2010.
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