Oil futures dropped almost 2% on Wednesday after U.S. government data showed that crude inventories rose more than expected — for a fifth week in a row.
Crude oil for December delivery, the new front-month contract, dropped $1.83, or 1.9%, to $96.47 U.S. a barrel on the New York Mercantile Exchange. Prices traded at around $96.54 U.S. before the inventory figures. The latest move comes a day after futures prices settled at their lowest level since June 28, based on FactSet data tracking the most-active contracts.
The Energy Information Administration reported Wednesday that crude stockpiles rose 5.2 million barrels for the week ended Oct. 18.
Analysts polled by Platts were looking for a climb of three million barrels. The American Petroleum Institute late Tuesday had reported a climb in crude supplies that matched expectations.
EIA data show that crude inventories have now climbed for five weeks in a row, by a total of 24.1 million barrels.
Rounding out the EIA data, gasoline supplies fell by 1.8 million barrels last week, while distillate stockpiles rose by 1.5 million barrels. Gasoline stockpiles were expected to fall by 400,000 barrels, while forecasts called for a decline of 1.6 million barrels for distillates.
The government agency reported its numbers, covering the week ended Oct. 11, on Monday. They had been delayed because of the government shutdown. For that week, data showed that crude supplies surged by a more-than-expected four million barrels.
At last check, November gasoline fell four cents, or 1.5%, to $2.58 U.S. a gallon. Heating oil for November delivery traded at $2.94 U.S. a gallon, down 5.5 cents, or 1.8%.
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