Oil dropped for a second day in New York on growing speculation that demand may be curbed by a rally that has driven prices to a nine-month high, as Bloomberg stated.
West Texas Intermediate futures slid as much as 0.9 % after falling for the first time in six days yesterday, and the demand for oil may deteriorate after London-traded Brent rose to a record high when priced in Euros and pounds, according to Morgan Stanley.
Oil for April delivery on the New York Mercantile Exchange declined as much 94 cents to $107.62 a barrel in electronic trading and was at $107.67 a barrel at 1:47 p.m. London time.
The contract yesterday fell 1.1 % to $108.56, snapping the longest winning streak since January 2010. Prices rose 6.3 % last week to the highest since May 3 and are up 10 % this year.
Brent oil for April settlement dropped as much as $1.64 to $122.53 a barrel on the ICE Futures Europe exchange in London. Prices have advanced 15 % this year on concern the west’s dispute with Iran over the Islamic republic’s atomic research may lead to a disruption in exports from the Middle East.