Commodity Corner: Oil Declines on Inventory Build
Oil futures settled lower again Wednesday after a weekly government report showed a higher-than-expected build in U.S. crude inventories.Crude oil for June delivery ended the day at $109.24 a barrel, a $1.81 drop from Tuesday, after the U.S. Energy Information Administration stated that oil stocks increased 0.9 percent last week to 366.5 million barrels. Analysts surveyed by Platts had anticipated a build approximately one-half the volume of the 3.4 million barrels reported by EIA.
June oil traded within a range from $108.48 to $111.22 Wednesday.
Weather forecast models indicate that milder temperatures are on the horizon for much of the U.S. As a result, the natural gas futures price fell 11 cents Wednesday to $4.58 per thousand cubic feet.
Natural gas peaked at $4.685 and bottomed out at $4.56 during the midweek session.
June gasoline lost a penny to end the day at $3.32 a gallon. The contract price fluctuated from $3.28 to $3.34.