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.
View Full Article
Copyright 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add 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.
Most Popular Articles
From the Career Center
Jobs that may interest you