SINGAPORE (AP) -- Oil prices fell to below $97 a barrel Wednesday in Asia, extending a weeklong slump after a report showed U.S. crude supplies jumped more than expected last week, suggesting demand remains weak.
Benchmark oil for June delivery was down 31 cents to $96.70 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 93 cents to settle at $97.01 in New York on Tuesday.
Brent crude for June delivery was up 38 cents at $113.11 per barrel in London.
The American Petroleum Institute said late Tuesday that crude inventories rose 7.8 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 2.2 million barrels.
Inventories of gasoline fell 5 million barrels last week while distillates tumbled 2.7 million barrels, the API said.
The Energy Department's Energy Information Administration reports its weekly supply data later Wednesday.
Crude has dropped from $106 last week amid signs the U.S. and European economies may expand less than previously expected this year. Despite the recent sharp pullback in oil prices, some analysts say crude still trades above the level supply and demand fundamentals would suggest.
"Over the past months, stockpiles around the globe have continued to grow as the world's largest producers (the U.S., Saudi Arabia and Russia) continue to pump at or near record levels," energy analyst Richard Soultanian of NUS Consulting said in a report. "The markets are extremely well supplied and demand, as a result of slow growth in the U.S., recession in Europe and slowing growth in Asia, remains tepid."
In other energy trading, heating oil was down 0.7 cents at $2.98 per gallon and gasoline futures gained 0.5 cents to $3.00 per gallon. Natural gas added 3.8 cents at $2.43 per 1,000 cubic feet.
- New York Mercantile Exchange
- American Petroleum Institute