Oil Falls as Report Shows Rise in U.S. Crude Stocks

NEW YORK (AP) -- The price of oil fell near $97 a barrel Wednesday after a government report showed an increase in U.S. crude supplies.

Benchmark oil for March delivery dropped 50 cents to finish at $97.01 a barrel on the New York Mercantile Exchange.

Crude supplies increased by 600,000 barrels, or 0.2 percent, to 696 million barrels, which is 9.8 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.

Analysts expected an increase of 2.5 million barrels for the week ended Feb. 8, according to Platts, the energy information arm of McGraw-Hill (NYSE: MHFI  ) .

Traders may have been disappointed that supplies rose at all after a report late Tuesday from the American Petroleum Institute showed a drop of 2.3 million barrels in U.S. crude stockpiles last week. The API relies on voluntary reports from distributors and pipeline operators, while submissions for the government's report are mandatory.

Earlier, the Paris-based International Energy Agency lowered its consumption expectations by 85,000 barrels a day compared with data from a month ago. Despite the downward revision, the IEA still expects the world to use 90.7 million barrels of crude oil a day this year, or 1 million barrels a day more than OPEC's estimate, released Tuesday, of 89.7 million barrels a day.

Drivers in some parts of the U.S. are paying more at the pump, as the national average for a gallon of regular rose to $3.62 on Wednesday, according to AAA. That's up 2 cents from Tuesday and 31 cents more than a month ago. The highest prices are in California, the Northeast and the Midwest.

Brent crude, used to price international varieties of oil, rose 6 cents to end at $118.72 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex:

  • Wholesale gasoline fell 1 cent to finish at $3.04 a gallon.
  • Natural gas rose 8 cents to end at $3.31 per 1,000 cubic feet.
  • Heating oil fell 2 cents to finish at $3.22 a gallon.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2253715, ~/Articles/ArticleHandler.aspx, 8/27/2014 6:59:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement