Oil dropped for the first time in four days after the U.S. Energy Department said inventories climbed the most in 20 months and as Western nations considered releasing crude from strategic reserves.
Futures declined as much as 2.5% after the department said supplies gained 7.1 million barrels to 353.4 million last week, the largest increase since July 2010.
Crude oil for May delivery fell $2.28, or 2.1%, to $105.05 U.S. a barrel at 12:29 p.m. ET on the New York Mercantile Exchange. Oil traded at $105.30 before release of the inventory report at 10:30 a.m. The price is up 6.3% this year.
Brent oil for May settlement dropped $1.63, or 1.3%, to $123.91 U.S. a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate crude traded in New York was at $18.86, up from $18.21 yesterday. Brent is up 15% in 2012.
The gain in crude oil stockpiles was the fifth in six weeks and left supplies at the highest level since August. Analysts surveyed by Bloomberg News predicted a gain of 2.55 million.
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