Crude Oil Extends Decline After U.S. GDP Report Falls Short of Estimates

Oil extended losses in New York, tracking equity markets, after a report showed the U.S. economy grew less than forecast in the second quarter.

Gross domestic product expanded 2.4 percent, less than the 2.6 percent forecast in a Bloomberg survey. Crude oil, poised for its biggest weekly decline in four, may decline further next week as U.S. inventories rise, according to a separate survey.

“This drop should provide traders with a good level to get into long positions,” said Alexander Ridgers, head of commodities at London-based CMC Markets. “We are already near the lower end of the range for the week.”

Crude oil for September delivery fell as much as $1.18, or 1.5 percent, to $77.18 a barrel in electronic trading on the New York Mercantile Exchange and was at $77.32 at 1:43 p.m. London time. It is down 2.3 percent this week.

Brent crude for September settlement dropped as much as $1.09 to $76.50 on the London-based ICE Futures Europe exchange and was at $76.63 a barrel.

The U.S. is the world’s biggest consumer of oil.

To contact the reporter on this story: Rachel Graham in London on rgraham13@bloomberg.net

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