Oil falls a second day on US growth, supply worry
The price of oil fell Thursday as the impact of slower U.S. economic growth and higher oil supplies carried over to a second day.
Benchmark U.S. crude oil for June delivery dropped 32 cents to $99.42 on the New York Mercantile Exchange. Brent crude, an international oil benchmark, slipped 31 cents to $107.76 on the ICE Futures exchange in London.
On Wednesday, U.S. crude oil plunged $1.54 and Brent fell 91 cents after U.S. first-quarter economic growth of just 0.1 percent disappointed forecasters who expected an expansion of about 1 percent.
Meanwhile, the U.S. Energy Department said oil supplies rose by 1.7 million barrels last week. While the increase was less than expected by analysts, it still pushed the nation's supply to a record 399.4 million barrels. In addition, gasoline supplies rose by 1.6 million barrels, whereas analysts had expected a decline.
China, the world's second-largest economy, was also a source of concerns after a manufacturing survey suggested growth was weak.
In the U.S., the average price for a gallon of gasoline remained at $3.69 a gallon, according to AAA. A day earlier, the auto club said the average was either at or close to its springtime peak. The price is still up 13 cents from a month ago and 17 cents higher than at this time last year.
In other energy futures trading on Nymex:
— Wholesale gasoline fell 3 cents to $2.94 a gallon.
— Heating oil retreated 1 cent to $2.91 a gallon.
— Natural gas lost 10 cents to $4.72 per 1,000 cubic feet.