Oil Slides After Big US Gasoline Build Offsets Crude Draw



Reuters

NEW YORK, June 24 (Reuters) - Crude oil futures settled down more than 1 percent on Wednesday after a government report showing an eighth straight weekly drop in U.S. crude stockpiles was offset by a large build in refined products.

Uncertainties about progress in the Greek debt crisis added to the energy market's skittishness, even as support emerged from roadblocks to an Iranian nuclear deal aimed at allowing Tehran to resume oil exports without restrictions.

Brent futures settled down 96 cents, or 1.5 percent, at $63.49 a barrel. U.S. crude ended down 74 cents, or 1.2 percent, at $60.27.

The U.S. Energy Information Administration said crude stockpiles fell 4.9 million barrels last week, versus a 2.1 million-barrel draw expected by analysts in a Reuters poll.

The EIA also said gasoline stockpiles rose 680,000 barrels, versus a forecast drop of 304,000 barrels.

Inventories of distillates, which include diesel and heating oil, jumped 1.8 million barrels, more than an expected build of 1 million.

"The rise in gasoline inventories is more than enough to offset the crude oil inventory decline and makes the report a neutral one for the market," said John Kilduff, partner at New York energy hedge fund Again Capital.


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