Crude oil declined for a second day after a U.S. government report showed a larger than expected increase in fuel stockpiles in the world’s largest energy consuming nation. Gasoline stockpiles in the U.S. surged 5.4 million barrels last week, the Energy Department said yesterday. That’s more than the 500,000 barrel increase forecast in a Bloomberg News survey of analysts. Diesel and heating oil inventories jumped almost 3 million barrels, double what was expected, and crude oil stockpiles also climbed.
“If products aren’t moving, then there’s no demand for crude,” Sentje Diek, an energy analyst at HSH Nordbank AG, said by phone from Hamburg. “Gasoline and distillate stockpiles are clearly above their five year average.” Crude oil for November delivery fell as much as 95 cents, or 1.4 percent, to $68.02 a barrel in electronic trading on the New York Mercantile Exchange. It was at $68.49 at 11:11 a.m. London time. Coupled with a 3.9 percent plunge yesterday, the two day decline has reduced oil’s year to date gain to 54 percent, from more than 60 percent last week.....Read the entire article
