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Crude Drops to Three-Month Low After U.S. Fuel Demand Falls

  • Oil slides for fifth day in longest losing streak since March
  • Crude stocks fell more than expected but fuel demand slipped
Russian Oil Pumping Jacks Ahead Of OPEC+
Photographer: Andrey Rudakov/Bloomberg
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Crude in New York dropped to the lowest since May after a surprise increase in U.S. gasoline inventories signaled fuel demand is under threat with the delta variant menacing the nation.

West Texas Intermediate ended its session down 1.7% to settle at $65.46 a barrel, the fifth straight daily decline. Futures fell below $65 for the first time since May in after-hours trading. Minutes from the latest Federal Reserve meeting suggested that tapering of monthly asset purchases could begin as soon as this year, a move that could strengthen the dollar and lower the appeal of commodities priced in the currency, said Phil Flynn, senior market analyst at Price Futures Group Inc.