Oil Heads for Biggest Drop in Five Months Amid Glut

The EIA said in a monthly report on June 30 that gasoline demand in April was 9.21 million barrels a day, down from 9.49 million that had been estimated in weekly data.

"The April data raised questions about the strength of gasoline demand," Wittner said. "While gasoline demand is strong, it’s starting to look less spectacular than earlier thought."

August gasoline futures dropped 6.1 percent to $1.422 a gallon. Earlier, the contract touched $1.4157, the lowest since April 18.

Three attacks hit Saudi Arabia on Monday: one near a Shiite mosque in the eastern city of Qatif, another near the U.S. consulate in Jeddah and a third outside the courtyard of the Prophet’s Mosque in Medina. Chevron Corp. has decided to go ahead with the $36.8 billion expansion of the Tengiz oil project in Kazakhstan. Crude prices won’t rise much further over the next year and a half as demand growth slows and refiners comfortably meet gasoline consumption, Vitol Group Chief Executive Officer Ian Taylor said in a Bloomberg Television interview.

- With assistance from Grant Smith and Laura Blewitt. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net ;David Marino at dmarino4@bloomberg.net Carlos Caminada


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