Oil Plunges On Fear Of Inventory Data

Oil prices came back from their three month high by a few dollars this morning in anticipation of news that the US has a healthy stockpile of oil.

Bloomberg: U.S. oil inventories gained 1.5 million barrels last week, according to the median of 14 analyst estimates in a Bloomberg News survey before today’s Energy Department report. The American Petroleum Institute yesterday said stockpiles rose 4.66 million barrels to 349.9 million barrels, the most in almost two years.

“We are seeing a bit of caution ahead of the Energy Department numbers, especially after the API report yesterday,” said Peter Luxton, an energy analyst at Informa Global Markets. “It is a general lack of product demand causing refinery utilization to come down.”

Crude oil for April delivery fell as much as 84 cents, or 1.7 per cent, to $48.32 a barrel and traded at $48.81 a barrel on the New York Mercantile Exchange at 9:30 a.m. in London.

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