West Texas Intermediate crude declined with gasoline as U.S. inventories of the motor fuel expanded for a third week, threatening to depress refining margins. Brent also fell.
Gasoline stockpiles grew by 3.38 million barrels last week and supplies around New York Harbor, where futures contracts are delivered, were at the highest seasonal level since 2008, Energy Information Administration data showed. Gasoline futures ended at the lowest price in almost six months.
“The key feature that’s driving the market down is gasoline,” said Tom Finlon, Jupiter, Florida-based director of Energy Analytics Group LLC. “Relatively limited gasoline demand is a key fundamental element in the market now.”
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