Crude Drops in Face of Gasoline Hoard Traders ‘Can't Hide From’
- Futures close 2.9% lower for biggest drop since Oct. 6
- U.S. gasoline inventories expanded by most since January
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Oil had its worse day in two months as a surge of gasoline supplies held in U.S. storage tanks signals refiners will need less crude.
West Texas Intermediate oil futures slid 2.9 percent, while gasoline tumbled to its lowest in almost seven weeks. American gasoline inventories rose by 6.78 million barrels last week, the most since January, the U.S. Energy Information Administration said. That exceeded the estimates of every analyst in a Bloomberg survey and overshadowed a third weekly slide in crude stockpiles. Meanwhile, U.S. refineries boosted operating rates for a seventh straight week, contributing to the excess supplies shunted into storage.