WTI Oil Slips as U.S. Output Rises to 20-Year High

West Texas Intermediate oil in New York slipped after the Energy Information Administration said U.S. crude production rose to the highest level in 20 years.
Prices fell as much as 0.3 percent as output climbed 1 percent last week to 7.06 million barrels a day, the highest level since December 1992, according to the EIA, the Energy Department’s statistical arm.

“Prices will come off a little bit,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “The drop in prices will be limited because of underlying strength in the market.”
Crude oil for March delivery fell 17 cents to $97.34 a barrel at 10:42 a.m. on the New York Mercantile Exchange. Futures touched $98.11 earlier, the highest level since Feb. 1. The contract traded at $97.75 before the release of the report at 10:30 a.m. in Washington. The volume of all contracts traded was 42 percent above the 100-day average.
Brent oil for March settlement, which expires today, slipped 20 cents to $118.46 a barrel on the London-based ICE Futures Europe exchange. The more actively traded April contract dropped 18 cents to $117.57. Volume was 17 percent above the 100-day average.
The European benchmark grade traded at a $21.12-a-barrel premium to WTI, down from $21.15 yesterday. The spread was $23.18 on Feb. 8, the widest level since Nov. 26.


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