Oil dropped for a second day

Oil dropped for a second day amid rising crude stockpiles and speculation the Federal Reserve may refrain from more monetary stimulus to boost the U.S. economy.

Futures slipped as much as 1.2 percent in New York, extending yesterday’s drop. An American Petroleum Institute inventory report after the market closed showed an increase in crude supplies three times larger than analysts expect a separate report from the Energy Department to show later today. Federal Reserve minutes from a March policy meeting showed it plans to hold off from increasing monetary accommodation unless economic expansion falters.

U.S. crude inventories increased 2.5 million barrels in the week ended March 30 to 355.9 million, the highest since August, according to the today’s Energy Department data. The industry-funded API yesterday said supplies gained 7.8 million barrels, the most since Dec. 23.

Oil for May delivery declined to $101.08 a barrel in electronic trading on the New York Mercantile Exchange. Brent oil for May settlement on the London-based ICE Futures Europe exchange fell as much as 81 cents, or 0.7 percent, to $124.05 a barrel. The European benchmark contract was at a premium of $21.31 to New York futures, compared with $20.85 yesterday, the widest closing level since October.