Wednesday, November 17, 2010
Commodity Corner: Crude Oil Declines Despite Lower Inventories
Crude oil for December delivery fell $1.90 to settle at $80.44 Wednesday as traders anticipated China's pending actions to rein in inflation. China is expected to raise interest rates to in an effort to stabilize rising prices, and the country's government on Wednesday emphasized its focus on boosting the availability of oil and other commodities.
December crude oil traded from $80.06 to $82.67 Wednesday.
The EIA also reported that gasoline stocks fell 1.2 percent last week. However, front-month gasoline settled flat at $2.16 a gallon Wednesday. According to the DOE agency, total U.S. gasoline inventories stood at 207.7 million barrels as of November 12.
The gasoline futures price ranged from $2.16 to $2.18 during Wednesday's trading.
Thanks to cooler weather, coupled with speculation that the DOE will report a drop in inventories Thursday, December natural gas settled at $4.03 per thousand cubic feet a .21 cent day on day increase. Natural gas traded from 3.80 to 4.04 Wednesday.
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