Crude Oil Declines on OPEC Production, Drop in US Equities - Bloomberg

By Ben Sharples May 28 (Bloomberg) -- Oil fell in New York, snapping twodays of gains, after Saudi Arabia’s oil minister said OPECdoesn’t need to cut output and U.S. stocks slumped because ofconcern higher borrowing costs may hinder an economic recovery.

Manufacturer of Track Mounted Cone Crusher India

Oil demand is starting to recover, removing any need toreduce production, Ali al-Naimi said yesterday in Vienna. U.S.benchmark stock indexes dropped on a jump in long-term borrowingcosts. The 10-year Treasury note declined for a fourth day,sending its yield to a record spread above two-year notes. “There is a very high correlation with equities,” MarkPervan , a senior commodity strategist at Australia & New ZealandBanking Group Ltd. in Melbourne, said in an interview withBloomberg Television. “Contrary to what OPEC is saying, demandremains very weak.” Crude oil for July delivery dropped 58 cents, or 0.9percent, to $62.87 on the New York Mercantile Exchange at 10:20a.m. in Sydney. Yesterday, the contract rose $1, or 1.6 percent,to settle at $63.45 a barrel, the highest since Nov. 5.

Full Story: Crude Oil Declines on OPEC Production, Drop in US Equities - Bloomberg