Oil Falls On Supply Growth, US Crude Drops To 16-Month Low
NEW YORK, Sept 10 (Reuters) - U.S. crude futures fell to a 16-month low and Brent to a 17-month low on Wednesday on rising supply and tepid demand as OPEC lowered projected demand for its crude and data showed U.S. refined product stocks jumped.
U.S. futures fell two cents below its previous 2014 low from January after Wednesday's report from the Energy Information Administration of a near 1 million barrel drop in U.S. crude stocks last week, a slightly smaller fall than expected.
Crude oil inventories at Cushing, Oklahoma, the delivery point for the U.S. crude oil contract traded on the New York Stock Exchange, rose by 77,000 barrels and gasoline and distillate stocks jumped by 2.4 million and 4.1 million barrels respectively.
"The report is very bearish given the large increases in refined product inventories, and even though the crude drawdown was close to expectations, it seemed to disappoint," said John Kilduff, partner at Again Capital LLC in New York.
Brent crude for October delivery fell $1.12 to settle at $98.04 a barrel, off for a fifth straight session.
Brent fell to $97.60 intraday, the lowest price since April 18, 2013, when it hit $96.75. Brent prices are off by 15 percent since hitting a year high above $115 a barrel in June, with fast-rising U.S. output and the return of exports from Libya creating a market that looks increasingly over-supplied.
U.S. October crude fell $1.08 to settle at $91.67 a barrel, having dropped to $91.22, the lowest since May 2, 2013. Its discount to Brent <CL-LCO1=R> narrowed intraday to $6.19 a barrel, the lowest since mid-August.
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