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Oil Falls on Big Gasoline Inventories Build
Sep 15,2011 09:22CST
industry news
Source:SMM
U.S. crude oil price dropped on Wednesday as U.S. Energy Information Administration (EIA) reported a build of 1.9 million barrels for gasoline inventories.

NEW YORK, Sept. 15 (Xinhua) -- U.S. crude oil price dropped on Wednesday as U.S. Energy Information Administration (EIA) reported a build of 1.9 million barrels for gasoline inventories, indicating weak fuel demand.

U.S. crude benchmark got pressured after the U.S. EIA reported that the gasoline inventories added 1.9 million barrels in the week ending Sept. 9, exceeding expectations. And EIA said the fuel demand during this summer driving season dipped to the lowest level since 2003.

But the crude inventories dropped sharply by a greater-than- expected 6.7 million barrels due to the production shutdown caused by the Tropical Storm Lee.

In London, the Brent crude rose as Greece expressed its determination to meet all its obligations. After a 25-minute phone call meeting among German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou, the Greek government said the debt-burdened euro zone member country would not leave the bloc despite all these recent rumors, which put a floor under the panic market.

And there was news that the BRICS countries including Brazil, Russia, India, China and South Africa were considering to buy European bonds to provide help. This also offered comfort to the worried investors.

Light, sweet crude for October delivery fell 1.30 dollars, or 1. 44 percent to settle at 88.91 dollars a barrel on the New York Mercantile Exchange. But in London, Brent crude for October delivery gained 51 cents, or 0.46 percent to close at 112.40 dollars a barrel on the results of the German, French and Greek leaders' phone call meeting.

 

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