Glut of gasoline stockpiles dulls prospects for crude demand
by Myra P. Saefong and Jenny W. Hsu
Oil futures fell to their lowest levels in more than three months Wednesday after U.S. government data revealed the first weekly climb in domestic-crude inventories in 10 weeks, along with a surprise increase in gasoline stockpiles and a rise in total crude production.
September West Texas Intermediate crude fell 91 cents, or 2.1%, to trade at $42.01 a barrel on the New York Mercantile Exchange. A settlement around this level would be the weakest since April 18 for a most-active contract, FactSet data show. Prices traded around $43.13 before the supply data. September Brent crude London’s ICE Futures exchange dropped $1.10, or 2.5%, to $43.77 a barrel.
“Look out below,” said John Macaluso, an analyst at Tyche Capital Advisors, referring to prices.