Oil dropped

West Texas Intermediate oil dropped after a government report showed inventories of crude, gasoline and diesel increased last week.

Futures declined as much as 1.7 percent after the Energy Information Administration said that crude supplies rose 18,000 barrels to 394.1 million. The report was projected to show a 1.75 million-barrel decline, according to the median of 12 analyst responses in a survey. Gasoline and diesel inventories added a total of more than 5 million barrels.

Prices rebounded from the day’s lows earlier after data showed that the U.S. economy grew at a slower pace in the first quarter than previously estimated. Gross domestic product expanded at a revised 1.8 percent annualized rate from January through March, down from a prior estimate of 2.4 percent, the Commerce Department said.

WTI crude for August delivery fell 93 cents, or 1 percent, to $94.39 a barrel at 11:09 a.m. on the New York Mercantile Exchange. The contract traded at $95.10 before the release of the EIA report at 10:30 a.m. in Washington. The volume of all futures traded was 26 percent above the 100-day average for this time of day.

Brent oil for August settlement dropped 66 cents, or 0.7 percent, to $100.60 a barrel on the London-based ICE Futures Europe exchange. Volume for all contracts was 24 percent lower than the 100-day average. The European benchmark grade traded at a $6.21 premium to WTI after closing yesterday at $5.94, the lowest since January 2011.

WTI is heading for a decline this quarter amid speculation that the U.S. Federal Reserve will pare stimulus and as China’s economic growth shows signs of slowing. Brent futures are headed for a third quarterly drop.