Oil declined as a jump in gasoline supplies held in U.S. storage tanks suggested refiners may not need to process as much crude going forward.
Futures declined as much as 2.4% in New York to a two-week low. American gasoline inventories rose by 6.78 million barrels last week, the steepest rise since late January, the U.S. Energy Information Administration said Wednesday.
The gasoline build exceeded the estimates of every analyst in a Bloomberg survey and overshadowed a third weekly slide in crude stockpiles.
More Than A Seasonal Factor
Although U.S. gasoline stockpiles typically expand at this time of year, last week’s increase was “a bigger number than people were looking for,” Craig Bethune, a senior portfolio manager at Manulife Asset Management, said by telephone. “Can’t hide from that.”
U.S. refineries boosted operating rates for a seventh straight week, the federal data showed, contributing to the excess supplies shunted into storage.
Oil topped $59 a barrel last month for the first time since mid 2015 as production cuts by the Organization of Petroleum Exporting Countries and allied producers such as Russia chewed into a worldwide glut. U.S. shale explorers have been a thorn in the side of the OPEC-led coalition, boosting output on an almost-weekly basis all …read more
Via:: IBD Futures