The supply of imported oil has jumped to the highest level in nearly four years, putting downward pressure on prices.
(Joel Page/Associated Press)
Price of oil falls as inventories swell
The supply of imported oil has jumped to the highest level in nearly four years, putting downward pressure on prices.
(Joel Page/Associated Press)
DALLAS — Oil tumbled to a one-week low after the government reported an unexpected increase in supplies as imports jumped to the highest level in almost four years.
Crude inventories climbed 2.1 percent to 360.8 million barrels in the week ended July23, the biggest increase since March 19, the Energy Department said. Imports climbed to the highest level since August 2006.
“This is huge, and it’s knocking prices down,’’ said Sean Brodrick, with Weiss Research in Jupiter, Fla.
Oil for September delivery fell 51 cents, or 0.7 percent, to settle at $76.99 a barrel on the New York Mercantile Exchange. Futures touched $75.90, the lowest level since July 20, after the report was released.
Prices have dropped 2.9 percent since settling at an 11-week high of $79.30 a barrel on July 22. Futures have risen 15 percent in the past year.
Oil supplies had been forecast to drop 1.73 million barrels, according to the median estimate of 16 analysts in the Bloomberg News survey.
US refineries operated at 90.6 percent of capacity last week, a decline from 91.5 percent, the highest level since August 2007.
Brent crude for September settlement on the London-based ICE Futures Europe exchange lost 7 cents to $76.06 a barrel.
Oil fell earlier in the day after total orders for durable goods unexpectedly dropped 1 percent amid a decrease in demand for aircraft. The Commerce Department report deepened concern that the economic recovery may be flagging and limiting fuel demand.
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