Oil tumbled to the lowest level in more than three weeks with the expectation that refinery demand for crude will weaken in the fall and as investors sought refuge in a stronger dollar.
Futures in New York declined 2.9% on Wednesday. While a U.S. government report showed shrinking domestic crude and gasoline inventories, many refineries will soon halt operations to conduct maintenance. Such work is typically carried out in the fall to coincide with a downturn in summertime fuel consumption. It’s a reminder to investors that both oil and gasoline demand, already depressed from a pandemic-driven lull in travel, may further weaken.
