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Oil falls more than 3 pct. on supply increase
Source: Agencies |
October 27, 2011, Thursday
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OIL prices dropped more than 3 percent yesterday after the government said US supplies grew much more than expected.
The price of benchmark crude fell US$2.97, or 3.2 percent, to end the day at US$90.20 per barrel on the New York Mercantile Exchange. Brent crude fell US$2.01 to finish at US$108.91 in London.
The Department of Energy reported an increase of 4.7 million barrels in the nation's storage tanks last week. Analysts expected supplies to grow by only 200,000 barrels, according to Platts, the energy-information arm of McGraw-Hill Cos.
For most of the year oil supplies fell in the US, as drivers and businesses burned less fuel and refineries cut their inventories to save money. Imports increased last week and boosted supplies, as many refineries finished their seasonal maintenance and kicked into higher gear. Refineries operated at nearly 85 percent capacity last week, up almost 2 percentage points in a week.
The increased activity doesn't mean the US is consuming more fuel. Oil and gasoline demand is still down when compared with a year ago, the government said.
In other Nymex energy trading, heating oil fell 3.02 cents to finish at US$3.0210 per gallon and gasoline futures lost 4.94 cents to end at US$2.6253 per gallon. Natural gas fell 6.8 cents to finish at US$3.590 per 1,000 cubic feet.
The price of benchmark crude fell US$2.97, or 3.2 percent, to end the day at US$90.20 per barrel on the New York Mercantile Exchange. Brent crude fell US$2.01 to finish at US$108.91 in London.
The Department of Energy reported an increase of 4.7 million barrels in the nation's storage tanks last week. Analysts expected supplies to grow by only 200,000 barrels, according to Platts, the energy-information arm of McGraw-Hill Cos.
For most of the year oil supplies fell in the US, as drivers and businesses burned less fuel and refineries cut their inventories to save money. Imports increased last week and boosted supplies, as many refineries finished their seasonal maintenance and kicked into higher gear. Refineries operated at nearly 85 percent capacity last week, up almost 2 percentage points in a week.
The increased activity doesn't mean the US is consuming more fuel. Oil and gasoline demand is still down when compared with a year ago, the government said.
In other Nymex energy trading, heating oil fell 3.02 cents to finish at US$3.0210 per gallon and gasoline futures lost 4.94 cents to end at US$2.6253 per gallon. Natural gas fell 6.8 cents to finish at US$3.590 per 1,000 cubic feet.
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