Tuesday, August 17, 2010

Crude Oil Falls After Industry Report Shows Higher U.S. Oil, Gasoline Supplies

Oil fell after an industry funded report showed an increase in U.S. crude and gasoline stockpiles, signaling a recovery in fuel demand may falter. Oil declined for the sixth day in seven after an American Petroleum Institute report showed crude supplies increased 5.87 million barrels and gasoline inventories rose 2.03 million barrels last week. An Energy Department report today may show that crude stockpiles dropped 1 million barrels, according to a Bloomberg News survey.

“The fact that crude oil and gasoline is building, that’s definitely not good,” said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. “We’ve got a ways to go before people are confident about the U.S. economy.” Crude oil for September delivery dropped as much as 34 cents, or 0.5 percent, to $75.43 a barrel in electronic trading on the New York Mercantile Exchange. It was at $75.62 at 12:10 p.m. Singapore time. Futures rose 0.7 percent yesterday to $75.77. Prices are up 9.2 percent from a year ago.

The Energy Department report may show U.S. gasoline supplies declined 375,000 barrels last week, according to the Bloomberg News survey. The report is scheduled to be released at 10:30 a.m. in Washington today. Work began on 546,000 houses at an annual rate last month, fewer than the 560,000 median estimate of economists surveyed by Bloomberg News and up 1.7 percent from June, Commerce Department figures showed yesterday in Washington.....Read the entire article.


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