West Texas Intermediate crude fell to the lowest in more than two years after an Energy Information Administration report showed U.S. inventories increased more than forecast last week.
Stockpiles climbed 7.11 million barrels in the week ended Oct. 17, the EIA said in a weekly report. Analysts surveyed by Bloomberg had expected a gain of 3 million. Refiners operated at the lowest level since March, reducing gasoline inventories.
“It’s definitely a surprise and a bearish report,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “The further decline in the utilization rate obviously causes crude oil inventory to back up.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.