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Oil prices slide as stockpiles build
Source: Agencies |
June 24, 2010, Thursday
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OIL prices dropped yesterday after the government reported that crude supplies unexpectedly grew last week and remain well above typical levels.
Benchmark crude for August delivery fell US$1.50 to settle at US$76.35 on the New York Mercantile Exchange.
The Energy Information Administration said yesterday that crude oil supplies increased by 2 million barrels last week. Analysts were looking for stockpiles to drop.
Oil prices also were undercut by a judge's ruling Tuesday that lifted the government's six-month ban on deepwater drilling in the Gulf of Mexico. Washington is appealing the ruling. If it stands, more supplies of crude may become available, which would soften prices.
Furthering dampening prices was the government's report that new home sales sank to the lowest level on record in May, indicating the economic recovery is still in low gear.
"That means oil demand is going to be poor," PFGBest analyst Phil Flynn said.
In other Nymex trading, heating oil fell 4.45 cents to settle at US$2.0684 a gallon, gasoline dropped 5.12 cents to settle at US$2.0823 a gallon and natural gas gained 4.8 cents to settle at US$4.804 per 1,000 cubic feet.
In London, Brent crude lost US$1.77 to settle at US$76.27 a barrel on the ICE futures exchange.
Benchmark crude for August delivery fell US$1.50 to settle at US$76.35 on the New York Mercantile Exchange.
The Energy Information Administration said yesterday that crude oil supplies increased by 2 million barrels last week. Analysts were looking for stockpiles to drop.
Oil prices also were undercut by a judge's ruling Tuesday that lifted the government's six-month ban on deepwater drilling in the Gulf of Mexico. Washington is appealing the ruling. If it stands, more supplies of crude may become available, which would soften prices.
Furthering dampening prices was the government's report that new home sales sank to the lowest level on record in May, indicating the economic recovery is still in low gear.
"That means oil demand is going to be poor," PFGBest analyst Phil Flynn said.
In other Nymex trading, heating oil fell 4.45 cents to settle at US$2.0684 a gallon, gasoline dropped 5.12 cents to settle at US$2.0823 a gallon and natural gas gained 4.8 cents to settle at US$4.804 per 1,000 cubic feet.
In London, Brent crude lost US$1.77 to settle at US$76.27 a barrel on the ICE futures exchange.
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