US Oil Slides for 2nd Straight Day; Spread Widens
NEW YORK, Oct 30 (Reuters) - U.S. oil futures extended their move lower for a second consecutive day on Wednesday after government data showed large inventory builds, further widening the domestic oil's discount to international benchmark Brent.
Disruptions to Libyan oil exports have cut supplies to Europe and Asia while supporting Brent prices.
The divergent courses of the North American and international oil markets boosted Brent's premium over the U.S. benchmark to more than $13 a barrel.
The U.S. Energy Information Administration reported a sharp 4.1-million-barrel rise in crude stocks in the United States. Supplies at the Cushing, Oklahoma, U.S. oil storage hub rose 2.2 million barrels, their third straight weekly rise.
Brent crude for December delivery settled 85 cents higher at $109.86, after touching a one-week high of $110.16.
Stronger gasoline prices also underpinned Brent. U.S. gasoline futures settled at a one-week high, up 4.10 cents at $2.6508 per gallon after a report that Irving Oil Ltd will return to service its gasoline-making unit at its 300,000 barrel per day Saint John, New Brunswick, refinery. The November RBOB contract expires at the end of trading on Thursday.
"With Brent rising and that refinery news, gasoline was more vulnerable to a little rally," said Gene McGillian, analyst with Tradition Energy in Stamford, Connecticut.
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