Oil slides more after U.S. settlement on API inventory report
By Jessica Resnick-Ault
NEW YORK (Reuters) - Oil prices fell on Tuesday, then slid more in post-settlement trade after an industry group reported that U.S. crude stockpiles fell less than expected in the latest week while gasoline stockpiles grew unseasonably.
Graphic: U.S. oil could drop to $52.17 - here%20Image.jpg
U.S. crude prices were down more than 1 percent at $52.32 a barrel in post-settlement trade after the American Petroleum Institute released its weekly data, indicating that crude stockpiles declined less than analysts had forecast.
Oil futures fell during the trading session, touching their lowest in 11 days as the U.S. government reported that shale oil output in May was expected to post the biggest monthly increase in more than two years.
The oil market has been caught in a tug-of-war, with OPEC production cuts supporting prices while signs of rising U.S. production have pressured crude on concerns about a glut. On Tuesday, U.S. West Texas Intermediate crude touched a low of $52.10 before bouncing on suggestions that Saudi Arabia is holding crude off the market.
"We're right at the battle ground: the bulls and the bears are facing off against each other, trying to make their last stand," said John Kilduff, Partner at Again Capital in New York. Continued...