Oil Dives 5 Percent on Surprise Build in U.S. Crude, Gasoline
Stocks
June 14, 2017
Oil prices slid 5 percent
on Wednesday to a one-month low, after an unexpected increase in
U.S. inventories of crude and gasoline fanned fears that output
cuts by major world oil producers have not done much to drain a
global glut.
Crude stocks in the United
States grew 3.3 million barrels to 513 million barrels,
according to the U.S. Energy Information Administration (EIA).
That confounded forecasters who had predicted a drop of 3.5
million barrels, especially a day after data from the American
Petroleum Institute indicated an even bigger fall.
Gasoline inventories also
unexpectedly rose, imports increased, and exports dropped, the
EIA data showed.
U.S. crude futures settled
down 5 percent, or $2.47 a barrel, at $45.72 a barrel, the
lowest settlement for U.S. crude since May 4. U.S. benchmark
futures CLc1 have slid more than 11 percent in 10 days of
trading.
Brent crude prices LCOc1
fell $2.06, or 4 percent to settle at $48.06 a barrel. Official
settlement prices were delayed due to a technical issue,
according to a Nymex spokesperson.
Gasoline futures 1RBc1
tumbled 4 percent to $1.4921 a gallon, lowest since May 10, as
rising inventories fed worries about weak demand. Overall
gasoline demand is down 0.7 percent for the past four weeks from
a year ago, the EIA said.
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