Oil falls to multi-week lows on persistent supply glut
By Robert Gibbons
NEW YORK (Reuters) - Oil prices fell a third straight session to multi-week lows on Tuesday on the persistent global supply glut ahead of data expected to show another increase in U.S. crude inventories.
Futures felt pressure from expectations that U.S. crude inventories rose 3.4 million barrels last week, a fifth consecutive build after gaining 22 million barrels in a four-week span.
At 476.6 million, U.S. crude stocks on Oct. 16 were nearly 100 million barrels above the year-ago period, according to Energy Information Administration (EIA) data.
Brent December futures fell 73 cents to settle at $46.81 a barrel. The settlement and the $46.41 session low were the lowest since Sept. 15.
U.S. December crude fell 78 cents to settle at $43.20, lowest settlement since Aug. 27. Tuesday's intraday low of $42.58 was the weakest since Aug. 28.
Front-month November U.S. RBOB gasoline and ultra-low sulfur diesel (ULSD) seesawed in volatile trading on the day options expired. The November contracts expire on Friday.
"It's still the supply glut weighing on crude and the products are going to be a bit volatile with options expiration," said Phil Flynn, analyst at Price Futures Group in Chicago.
While distillate inventories, which include diesel and jet fuel, were expected have fallen last week, storage utilization for distillates in the United States and Europe is nearing historic highs, Goldman Sachs said on Monday. Continued...