Oil below $102 after US output hits 28-year high

The price of oil declined Thursday after official figures showed US crude production at a 28-year high.

Benchmark US crude for June delivery was down 42 cents to $101.95 a barrel at 0740 GMT on the New York Mercantile Exchange. The contract rose 67 cents on Wednesday to close at $102.37.

The US Energy Information Administration said Wednesday that domestic crude production reached 8.428 million barrels during the week ended May 9. That was the highest level since October 1986.

The decline in oil prices comes after crude climbed above $102 a barrel amid tensions in Ukraine. An industry report also showed crude stocks fell at a key US storage hub. Brent crude was down 20 cents to $109.11 a barrel on the ICE exchange in London.

In other energy futures trading in New York: Wholesale gasoline fell 0.3 cent to $2.948 a gallon; Natural gas dropped 1.8 cents to $4.349 per 1,000 cubic feet; Heating oil shed 0.4 cent to $2.958 a gallon.