Oil prices down 2 percent; product builds offset U.S. crude draw
Oil prices extended losses on Wednesday, falling about 2 percent, after data showing large weekly builds in U.S. petroleum products offset a surprise draw in crude stockpiles.
Brent crude futures were down $1.03 at $46.07 per barrel at 11:08 a.m. EDT (1508 GMT).
U.S. West Texas Intermediate (WTI) crude futures slid $1.08 to $43.82.
Both Brent and WTI rose briefly after the U.S. Energy Information Administration reported that crude inventories fell 559,000 barrels during the week ended Sept. 9. Analysts had expected a build of 3.8 million barrels. [EIA/S]
But the EIA also reported that inventories of distillates, which include diesel and heating oil, rose by 4.6 million barrels in the week to Sept. 9, versus analysts’ expectations of an increase of 1.5 million barrels. That build weighed on broader market sentiment, forcing crude futures to reverse gains.
“A build to gasoline stocks amid lower runs and lower product supplied counters the bullish theme, as does a strong build to distillates,” said Matthew Smith, analyst at New York-based crude cargo tracker Clipperdata. “So, it’s a mixed report – bullish crude and bearish products.”
