US Crude Falls More Than 1% On Surprise Stockpile Build


NEW YORK, July 8 (Reuters) - U.S. crude futures fell more than 1 percent on Wednesday after a surprise build in stockpiles while gasoline rallied on bets for strong fuel demand through the peak summer driving season.

The U.S. Energy Information Administration said inventories rose last week for crude, gasoline and distillates. That surprised market players a day after industry group the American Petroleum Institute had reported a draw of 1 million barrels. Analysts polled by Reuters had forecast a crude draw of 700,000 barrels.

"We were not supposed to be building crude inventories in early July. This tells me the data will be additive to the macro-based selloff and perhaps make it worse," said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington.

Earlier this week, oil prices tumbled to three-month lows on worries about the impact of Greece's debt woes and China's stock market plunge on the world economy and fuel demand.

Oil prices also felt pressure from Iran's eagerness to seal a nuclear accord that will allow it to resume crude exports without sanctions into an already glutted global market.

U.S. crude's front-month contract settled down 68 cents, or 1.3 percent, at $51.65 a barrel. It had fallen on Tuesday to $50.58, its lowest since April 8.

Brent settled up 20 cents, or 0.4 percent, at $57.05, bucking the trend in U.S. crude for a second straight day.


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Kurt | Jul. 8, 2015
Not a big surprise that WTI would fall out. There seems no sustained upward price pressure; ample supply, essentially flat demand due to a flat-lined US economy, and significant signals that other economies are circling the porcelain throne rather ominously. And, some folks needed to take some profits when they went in at $45. Production still has to top out and begin its downslope before any price recovery of note occurs. At that point, maybe real price recovery may occur. The recovery will be long and a relatively shallow slope, with several drops along the way. On the positive side, maybe real leadership will find its way into our government and some realistic reform of US petro-trading ability will be addressed. It is not the 70s, 80s, 90s, or even 10s and it is due time to think of oil and gas as saleable commodities to our trading partners around the globe. Of course, all this can change with the blink of an eye and a protracted global conflict involving a petro-government.


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Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours