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. 

Gold prices are rising due to increased demand for bars and coins after the fall in prices to two-year low yesterday.

Since the beginning of the year, spot prices have decreased by 18 percent after 12 years of growth, which led to high demand for physical precious metals.

Premiums for the gold bars in Singapore to spot prices in London rose to a maximum of 18 months of $ 1.70 per ounce, but demand in the largest consumer of gold in India is surprisingly low, despite the wedding season. Parents usually give their daughters gold jewelry for the wedding.

Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust on Tuesday fell 0.73 percent to 1.145,92 tons. Market participants fear that the debt-ridden euro zone countries after Cyprus will decide to sell some gold reserves.

Credit Suisse warns that "for a period of one to six months, the risk of lower prices, given the negative trend and neutral fundamentals. We lower forecast for the three months to the negative and expect the price to three months will be $ 1,300."

The cost of the June gold futures on COMEX today rose to 1395.2 dollars per ounce.

Change % Change Last

GOLD 1,387.40 26.30 1.90%

OIL (WTI) 88.72 0.01 0.01%