Oil dropped

West Texas Intermediate oil tumbled for the fourth time in five days as U.S. production rose to the highest level in two decades last week and U.S. equities fell.

Prices dropped as much as 2.2 percent after the Energy Information Administration said output climbed to 7.2 million barrels a day, the most since July 1992, and gasoline and diesel demand decreased. Crude output gained 0.4 percent in the week ended April 12, the EIA, the Energy Department’s statistical arm, reported. Gasoline consumption dropped for a second week to 8.38 million barrels a day. Demand for distillate fuels, including diesel and heating oil, tumbled 5.9 percent to 3.63 million barrels a day.

Crude stockpiles decreased 1.23 million barrels to 387.6 million last week, the EIA said. They were at the highest level since July 1990 in the prior week. Analysts had forecast a gain of 1.2 million. Imports of crude slumped 3.7 percent to 7.43 million barrels a day, a third consecutive decline.

Oil extended losses as the Standard & Poor’s 500 Index slid a day after the biggest rally in three months and the dollar strengthened against the euro.

BNP Paribas reduced its 2013 forecasts for Brent and WTI to reflect the price drop in the first quarter. It trimmed its 2013 Brent estimate to $108 a barrel from $115 and WTI to $95 from $100, while advising investors to bet on a rebound in the second half of the year.

WTI for May delivery fell to $86.06 a barrel on the New York Mercantile Exchange.

Brent for June settlement slipped $1.99, or 2 percent, to $97.92 a barrel on the London-based ICE Futures Europe exchange. The contract touched $97.85, the lowest intraday level since July 11.