Oil Prices Fall On EIA Report Of Big US Crude Stocks Build



Reuters

NEW YORK, Sept 17 (Reuters) - Crude oil futures fell on Wednesday after a government report showed crude stocks rose sharply in the United States last week and as a strong dollar continued to create headwinds for dollar-denominated commodities.

U.S. crude stocks rose 3.7 million barrels last week, against expectations for a drop, the Energy Information Administration said, as refineries cut capacity utilization and imports jumped.

Brent November crude slipped 8 cents to settle at $98.97 a barrel, recovering from an intraday low of $98.51.

U.S. October crude fell 46 cents to settle at $94.42, falling intraday to $93.74.

"It looks like we've got extra oil hanging around - that was the initial shock of the number," said Phil Flynn, an analyst at the Price Futures Group in Chicago.

"The number indicates the imports were pretty darn good last week, (which) may be in part because we had a pretty strong dollar situation, I think that's why the number was so big."

The recent strength of the dollar has been a significant headwind for oil, as it makes commodities priced in dollars more expensive for buyers using other currencies.


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