Oil dropped for a second day

West Texas Intermediate crude dropped for a second day, extending the biggest loss in more than a month, as U.S. crude output surged to a 22-year high.

Futures fell as much as 1.2 percent after decreasing 1.7 percent yesterday as the Energy Information Administration reported U.S. output rose to 7.56 million barrels a day last week, the most since December 1990. Declines eased on a climb in orders for U.S. durable goods in June.

U.S. crude production has surged as the combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies trapped in shale formations in the central part of the country.

Crude inventories decreased 2.8 million barrels last week, data yesterday from the EIA, the Energy Department’s statistical arm, show. Stockpiles decreased 29.9 million barrels in the four weeks ended July 19, the largest four-week drop in data dating to 1982.

Bookings for U.S. goods meant to last at least three years increased 4.2 percent, led by transportation equipment, after a revised 5.2 percent gain in May that was bigger than initially reported, the Commerce Department said today in Washington.

WTI crude for September delivery declined 32 cents to $105.07 a barrel at 11:06 a.m. on the New York Mercantile Exchange. Futures touched $104.08, the lowest level since July 9. The volume of all futures traded was 14 percent above the 100-day average for the time of day.

Brent for September settlement rose 20 cents to $107.39 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 11 percent below the 100-day average. The European benchmark traded at a $2.32 premium to WTI, up from $1.80 yesterday. Brent dropped below WTI on July 19 for the first time since August 2010.