From the Wall Street Journal:
Oil Declines on U.S. Inventory Data
Futures fell as weekly data showed the first increase in crude-oil supplies in nine weeks
Oil prices extended their losses on Wednesday after weekly inventory data showed the first increase in U.S. crude-oil supplies in nine weeks.Here are the last couple weeks of trading via FinViz:
Light, sweet crude for August delivery recently fell $1.55, or 2.6%, to $57.92 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.04 cents, or 1.6%, to $62.55 a barrel on ICE Futures Europe.
Commercial crude-oil inventories in the U.S. rose by 2.4 million barrels in the week ended June 26, the U.S. Energy Information Administration said Wednesday. Analysts surveyed by The Wall Street Journal had expected a decline of 1.2 million barrels.
U.S. oil supplies have shrunk in recent weeks since hitting a record high in April, as refineries have processed more crude into gasoline and other fuels. The inventory drops have helped boost U.S. oil prices by 25% in the second quarter.
But last week, stockpiles rose even as refinery utilization increased from 94% to 95% of capacity, the EIA said.
“Even at these high utilization rates, we are not drawing enough inventory,” said Andy Lipow, president of Lipow Oil Associates in New York. “This portends continued crude-oil price weakness through the balance of the year,” especially in the fall when refineries shut units to perform seasonal maintenance, he said. ...MORE