Oil Heads for Biggest Drop in Five Months Amid Glut

(Bloomberg) - Crude headed for the biggest decline in almost five months as the outlook for the world economy darkened while oil stockpiles remain ample.

Futures fell as much as 5.4 percent in New York as the dollar climbed and equities slipped. OPEC output rose in June, lead by Nigeria, a Bloomberg survey showed. Gasoline dropped to the lowest in more than two months after supplies on the U.S. East Coast reached a record, limiting available storage around New York Harbor, the delivery point for the futures contract.

"Concerns about the economy and a rising dollar are having a major impact," said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. "There’s a realization that there’s a product glut, especially in New York Harbor. The seasonal leader is pulling everything lower."

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