Crude oil fell for a second day in New York on speculation that fuel demand will decline as the U.S. summer peak consumption season ends and as crude and fuel inventories rose. Today’s U.S. Labor Day holiday marks the end of the peak driving season. Traders are betting more on falling gasoline prices rather than rising for the first time in almost four years.
U.S. crude inventories are about 5 percent higher than a year ago, while gasoline stockpiles are almost 10 percent more than last year. “Factors like driving season demand and the level of oil inventories have been neglected in recent months,” Roland Stenzel, a crude trader at E&T Energie Handelsgesellschaft mbH, said from Vienna. “I am beginning to think this could become more important again.”
Crude for October delivery fell as much as 58 cents, or 0.8 percent, to $74.02 a barrel in electronic trading on the New York Mercantile Exchange. It was at $74.37 at 3:14 p.m. London time. There will be no floor trading on the Nymex today because of the U.S. holiday. All electronic trades will count as part of tomorrow’s session. Brent crude for October settlement advanced 36 cents, or 0.5 percent, to $77.03 a barrel as of 3:14 p.m. on the ICE Futures Europe Exchange in London.....Read the entire article.