Oil Hits Multi-Month Lows On US Gasoline Build Worries

Reuters

NEW YORK, Aug 5 (Reuters) - Oil prices hit multi-month lows on Wednesday after a surge in gasoline stockpiles in the United States as the summer season, the country's biggest demand period for motor fuels, neared its end.

Futures of Brent, the global oil benchmark, hit a six-month bottom while that of U.S. crude touched a 4-1/2-month trough, despite a bigger-than-expected drawdown in U.S. crude stockpiles announced by the Energy Information Administration.

Traders and investors focused instead on the unexpectedly large build in gasoline inventories and its impact on refining margins.

"The resulting lower refining margins will decrease the incentive for crude oil processing, leading eventually to a renewed rise in crude oil stocks from an already lofty level," Carsten Fritsch, senior commodity analyst at Frankfurt-based Commerzbank AG, told the Reuters Global Oil Forum.

U.S. crude futures settled down 59 cents, or 1.3 percent, at $45.15 a barrel, hitting a low last seen in March of $44.83. The market initially rallied nearly $1, reacting to the drawdown in crude stockpiles before retreating on the gasoline numbers.

Futures of Brent closed 40 cents lower at $49.59 a barrel, after falling to a January low of $49.02.

Gasoline futures settled down almost 1 percent, hitting a 5-1/2 month low.


12

View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Chloride Sales Manager
Expertise: Business Development|Customer Service|Sales
Location: The Woodlands, TX
 
Tender Coordinator
Expertise: Budget / Cost Control|Contracts Engineer
Location: Houston, TX
 
Sourcing Commodity Leader - Aerospace
Expertise: Project Management|Supply Chain Management
Location: Irvine, CA
 
search for more jobs

Brent Crude Oil : $53.87/BBL 0.48%
Light Crude Oil : $50.73/BBL 0.79%
Natural Gas : $3.33/MMBtu 2.14%
Updated in last 24 hours