Crude Drops on Forecast U.S. Oil, Fuel Supplies Rose Last Week

Oil fell before a report forecast to show that U.S. supplies of crude and refined oils accumulated because of a sluggish economic recovery. An Energy Department report due tomorrow will probably show crude stockpiles rose by 1 million barrels last week, according to the median estimate of nine analysts surveyed by Bloomberg News. Gasoline and distillate fuel inventories also increased, the survey said.

Oil prices have gained 50 percent this year as a weaker dollar boosts the appeal of crude as a currency hedge. “With energy fundamentals still uninspiring, prices should remain confined to the $65-$75 trading range for some time to come,” said Edward Meir, an analyst with MF Global Ltd. in Darien, Connecticut. “The dollar’s decline seems to have stalled” and.....Read the entire article