Oil Snaps 5-Day Rally With Supply Glut Eclipsing Demand Recovery
- Crude stockpiles increased by 4.59 million barrels last week
- WTI futures for June fell 2.3% after 5 days of gains
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Oil snapped a five-day rally as a persistent supply glut outweighed signs of recovering U.S. fuel demand.
Futures in New York fell 2.3% Wednesday, after doubling in value from a week ago. American gasoline consumption on a four-week basis rebounded at its strongest rate on record last week but remained far below the seasonal average, according to the Energy Information Administration. At the same time, crude stockpiles increased by 4.59 million barrels, and total petroleum inventories rose to the highest level ever, sustaining concerns about storage capacity.