Oil slides after big U.S. gasoline build offsets crude draw
By Barani Krishnan
NEW YORK (Reuters) - Crude oil futures settled down more than 1 percent on Wednesday after a government report showing an eighth straight weekly drop in U.S. crude stockpiles was offset by a large build in refined products.
Uncertainties about progress in the Greek debt crisis added to the energy market's skittishness, even as support emerged from roadblocks to an Iranian nuclear deal aimed at allowing Tehran to resume oil exports without restrictions.Brent futures LCOc1 settled down 96 cents, or 1.5 percent, at $63.49 a barrel. U.S. crude CLc1 ended down 74 cents, or 1.2 percent, at $60.27.
The U.S. Energy Information Administration said crude stockpiles fell 4.9 million barrels last week, versus a 2.1 million-barrel draw expected by analysts in a Reuters poll. [EIA/S]
The EIA also said gasoline stockpiles rose 680,000 barrels, versus a forecast drop of 304,000 barrels.
Inventories of distillates, which include diesel and heating oil, jumped 1.8 million barrels, more than an expected build of 1 million.
"The rise in gasoline inventories is more than enough to offset the crude oil inventory decline and makes the report a neutral one for the market," said John Kilduff, partner at New York energy hedge fund Again Capital.
Gasoline futures RBc1 fell more than 1 percent while ultra-low sulfur diesel HOc1 lost just over 2 percent.
The products markets have dictated the price trend for crude over the past two weeks as demand for motoring fuels surged in the run-up to the peak U.S. summer driving season. Continued...