Oil reaches two week low on U.S. fuel stock increase (1 Visits)
On Wednesday, U.S. crude dropped almost three percent, its biggest daily decline in over two months. A sharp increase in U.S. inventories of refined fuel suggested demand may be slowing, while their production hit another weekly record.
U.S. gasoline stocks increased by 6.8 million barrels while distillate inventories were up 1.7, expecting expectations. The surprise information hit both prices of crude and products. The Keystone pipeline opened Tuesday, after a leak in South Dakota in mid-November.
WTI settled down $1.66 or 2.9 percent, the lowest close for the benchmark since November 16. Brent ended down 2.6 percent or $1.64 a barrel, its lowest close since November 2. Gasoline stocks tend to build in December, but are slightly above the five-year average for this time of year.
Gasoline futures led the energy complex lower Wednesday, while U.S. crude production rose to 9.7 million barrels per day.