Oil prices decline on consumer

Oil prices dropped Friday as U.S. consumer spending fell in April while income remained flat. Personal income decreased 5.6 billion U.S. dollars, or less than 0.1 percent in April, while personal consumption expenditures decreased 20.5 billion dollars, or 0.2 percent. As consumer spending accounts for about 70 percent of the U.S. economic activity, a soft spending in April will affect the largest oil consumption nation's gross domestic product in the second quarter. Overseas, euro-zone unemployment rate edged up to a new high of 12.2 percent in April from 12.1 percent in March, said Eurostat, the statistical office of the European Union, on Thursday. Among the member states, Greece and Spain recorded the highest unemployment rates of 27.0 percent and 26.8 percent, respectively. The high inventory of crude also weighed on oil prices. The U.S. crude supplies climbed 3 million barrels to 397.6 million in last week, hitting the highest level since the start of the weekly data in 1982, according to the Energy Information Agency. The Organization of the Petroleum Exporting Countries (OPEC) said the oil ministers reached quick agreement Friday on keeping its official output targets of 30 million barrels a day. While traders thought that OPEC should cut output as the oil supplies of the world are abundant. Light, sweet crude for July delivery lost 1.64 dollars, or 1.75 percent, to settle at 91.97 dollars a barrel on the New York Mercantile Exchange. Brent for July delivery went down 1.8 dollars, or 1.76 percent, to close at 100.39 dollars a barrel.