Unexpected Increase in Gasoline Inventories Sends Oil Prices Downward

 

A  report from the American Petroleum Institute that the nation has a whopping 9,196-million-barrel build in gasoline inventories, oil prices both in the U.S. and overseas dropped in Wednesday’s trading.

West Texas Intermediate crude fell $1.66 in trading on the New York Mercantile Exchange, hitting $55.96 per barrel. That’s a drop of 2.88% from the previous day.

In London, Brent crude contracts for February dropped $1.60 to hit $61.26 per barrel, a drop of 2.55%

Natural gas prices in the U.S. rose slightly to reach $2.922 per Mbtu. They went up 0.27%.

Analysts are blaming the drop on the increase in gasoline inventories. They had expected a small build of only 1.145 million barrels, not the amount that API report.

 

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