Skip to content
Subscriber Only

Oil Set for Year's Worst Month as U.S. Glut Adds to Trade Woes

  • Decline in stockpiles just one-fifth of expected withdrawal
  • WTI dropped 3.8% as EIA report adds to U.S.-China tension
A Shale-Oil Boomtown As Oil Bust Proves To Be Good
Photographer: Daniel Acker/Bloomberg
Updated on

Oil was on track for its worst monthly loss this year after a smaller-than-expected withdrawal from U.S. storage facilities fueled worries about weakening demand.

Futures tumbled 3.8% in New York on Thursday, extending May’s loss to 11%, after the U.S. Energy Information Administration said domestic inventories shrank by 282,000 barrels last week, just one-fifth the average estimate in a Bloomberg survey. Meanwhile, American gasoline stockpiles expanded for the second straight week despite the onset of the summer driving season in the U.S.