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Oil price slide as US gasoline stocks rise
New York, July 16: World oil prices skidded lower yesterday as US gasoline (petrol) inventories rose unexpectedly, and as a storm threat to Texan oil facilities diminished.
New York, July 16: World oil prices skidded lower yesterday as US gasoline (petrol) inventories rose unexpectedly, and as a storm threat to Texan oil facilities diminished.
New York's benchmark light sweet crude contract for August delivery slid 57 cents to 31.05 dollars a barrel.
In London, the Brent North Sea crude August contract fell 45 cents to 28.72 dollars. US crude oil stocks had fallen by 3.6 million barrels in the week to July 11 to 278.6 million barrels, the department of energy said in a regular update of us inventories.
However gasoline supplies, which traders had expected to fall, surged by 3.9 million barrels to 209.4 million barrels, while stocks of distillate fuel were up 5.5 million barrels to 114.7 million barrels. "The impact of the bearish product build was the most predominant (factor) today," said Refco market analyst Marshall Steeves.
Meanwhile, former hurricane Claudette was downgraded to a tropical storm, soothing fears about damage to US oil facilities, traders said.
The increase in gasoline stocks came as a shock given that US drivers traditionally use vast amounts of fuel in the summer.
"There is a massive reaction to the substantial products build, particularly in gasoline stocks, which was not expected," said Prudential Bache analyst Tony Machacek in London. Bureau Report
In London, the Brent North Sea crude August contract fell 45 cents to 28.72 dollars. US crude oil stocks had fallen by 3.6 million barrels in the week to July 11 to 278.6 million barrels, the department of energy said in a regular update of us inventories.
However gasoline supplies, which traders had expected to fall, surged by 3.9 million barrels to 209.4 million barrels, while stocks of distillate fuel were up 5.5 million barrels to 114.7 million barrels. "The impact of the bearish product build was the most predominant (factor) today," said Refco market analyst Marshall Steeves.
Meanwhile, former hurricane Claudette was downgraded to a tropical storm, soothing fears about damage to US oil facilities, traders said.
The increase in gasoline stocks came as a shock given that US drivers traditionally use vast amounts of fuel in the summer.
"There is a massive reaction to the substantial products build, particularly in gasoline stocks, which was not expected," said Prudential Bache analyst Tony Machacek in London. Bureau Report