Oil fell in New York after after the U.S. Energy Department said stockpiles rose more than expected.
Supplies rose 1.34 million barrels to 336.3 million in the week ended Oct. 7, the U.S. Energy Department said today. Inventories were forecast to gain 800,000 barrels, according to the median of 15 analyst estimates in a Bloomberg News survey.
Crude oil for November delivery fell $1.51, or 1.8%, to $84.06 U.S. a barrel at 11:11 a.m. ET on the New York Mercantile Exchange. Oil traded at $83.88 U.S. a barrel before the release of the report at 10:30 a.m. ET in Washington.
Prices also fell as equities declined, halting the strongest seven-day rally in the U.S. since March 2009.
U.S. consumer confidence hovered last week near a record low as Americans turned more pessimistic about the state of the economy. The Bloomberg Consumer Comfort Index fell to minus 50.8 in the week ended Oct. 9 from 50.2 the prior period. It was the fourth consecutive reading lower than minus 50, something that has happened just three previous times in its 26-year history.
Oil also declined as the euro weakened after the European Central Bank said forcing investors to take losses in bailouts is a risk to financial stability. A weaker euro and stronger dollar curbs commodities’ appeal as an alternative investment.
China’s exports rose the smallest amount in seven months and the customs bureau warned of "severe" challenges as the global economic outlook dims. Exports rose a less-than-forecast 17.1% in September from a year earlier, the bureau’s data showed in Beijing.
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