Oil Falls to a 1-Month Low on Larger Than Expected Supply Gains

Crude oil fell to a one month low after a government report of a larger than forecast gain in U.S. fuel supplies signaled that a glut is forming in the world’s biggest energy consuming country. U.S. gasoline stockpiles surged 5.41 million barrels last week, more than 10 times what was forecast by analysts in a Bloomberg News survey. Inventories of distillate fuel, a category that includes heating oil and diesel, rose 2.96 million barrels, almost double what was estimated. Crude oil supplies also climbed in the week ended Sept. 18.

“We had three major stock builds and increases in the year on year surplus,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. “We are testing support and will have to see if we can break out of the recent range”.....Read the entire article