Oil Dips As Gasoline Build Offsets Big US Crude Draw

Reuters

NEW YORK, Aug 26 (Reuters) - Oil prices fell almost 2 percent on Wednesday after a huge drawdown in U.S. crude stockpiles was offset by a larger-than-expected build in gasoline and distillates, which include diesel.

Crude inventories fell 5.5 million barrels in the week to Aug. 21, the biggest one-week decline since early June, according to U.S. government data that countered a Reuters poll of analysts calling a rise of 1 million barrels.

Gasoline stocks also rose, by 1.7 million barrels versus forecasts for a 1.3 million-barrel drop, the data from the Energy Information Administration (EIA) showed. Distillates climbed by 1.4 million barrels, against expectations for a 1.0 million barrels increase.

"The products builds are overwhelming the constructive crude draw," said Scott Shelton, commodities specialist at ICAP in Durham, North Carolina.

U.S. crude's front-month contract settled down 71 cents, or 1.8 percent, at $38.60 a barrel.

The front-month in Brent, the global oil benchmark, finished down 7 cents at $43.14, after initially trading higher right after the EIA data.

Gasoline's front-month tumbled for a third straight session to 7-month lows, settling down 6 percent on the day and 12 percent on the week. Gasoline's crack <RB-CL1=R>, or premium that refiners make from turning a barrel of crude into the fuel, fell to its lowest in six months.


123

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
Fabrication Project Superintendent
Expertise: Fabrication|Project Management
Location: Houma, LA
 
Senior Vice President, Operations
Expertise: Executive|Operations Management
Location: Houston, TX
 
Project Manager - Field Services
Expertise: Budget / Cost Control|Construction Manager|Construction Superintendent
Location: Odessa, TX
 
search for more jobs

Brent Crude Oil : $51.03/BBL 1.51%
Light Crude Oil : $47.09/BBL 0.66%
Natural Gas : $2.93/MMBtu 1.38%
Updated in last 24 hours