Oil Prices Tumble On Ample Supply, Weak Demand
NEW YORK, July 30 (Reuters) - Oil prices tumbled on Wednesday, with Brent leading the decline weakened by excess supplies in Europe and Asia while U.S. crude followed suit despite a larger-than-expected drop in nationwide stockpiles.
A weekly report released on Wednesday by the U.S. Energy Information Administration showed crude inventories fell by 3.7 million barrels last week, while gasoline and distillate stocks rose.
The bigger-than-expected draw in U.S. crude stocks prompted a short rally in mid-morning trading, but both Brent and U.S. crude soon turned negative as concerns lingered about weak demand, excess supplies and mixed economic signals both in the United States and worldwide.
"I'm a little surprised the market hasn't reacted more strongly [to the EIA data]," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut. "The market's showing signs of exhaustion, though, and it's waiting for a strong driver to weigh in."
Brent crude fell $1.21 to settle at $106.51 a barrel.
U.S. crude slipped 70 cents to settle at $100.27 a barrel, after hitting a low of $99.90.
The spread <CL-LCO1=R> between the two benchmarks closed at $6.24.
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