US Crude Down 4% To Hit 6-1/2-Year Low On Surprise Stock Build
The front-month in Brent, the global benchmark for oil, settled down $1.65, or 3.4 percent, at $47.16 a barrel. It extended its losses to $2 in post-settlement trade.
BP PLC's Whiting, Indiana, refinery, the largest in the Midwest, shut down its main 240,000 barrel per day crude unit unexpectedly at the start of the week covered by the data. Refinery utilization in the U.S. Midwest region fell to 92.2 percent last week, the biggest weekly drop in eight months.
U.S. gasoline futures fell even more than crude, tumbling 6 percent to a six-month low, despite stockpiles of the fuel falling 2.7 million barrels, compared with the 1.6 million-barrel drop expected by analysts in the Reuters poll.
U.S. diesel futures lost 3 percent, hitting six-year lows.
Oil has lost a third of its value since June on signs of creeping U.S. production amid record crude pumping in the Middle East.
"Couple that with the stronger dollar and weakness out of China and it's a recipe for lower prices ahead," said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland.
(Additional reporting by Lisa Barrington in London and Henning Gloystein in Singapore; editing by Frances Kerry, Chris Reese and Marguerita Choy.)
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