Business | Oil & Gas
Oil sheds early gain on big increase in US inventories
Oil traded near $115 a barrel yesterday, paring an earlier gain, after a US government report showed crude oil inventories rose much more than expected in the world's largest consumer.
- Reuters
- Published: 23:43 August 20, 2008
London: Oil traded near $115 a barrel yesterday, paring an earlier gain, after a US government report showed crude oil inventories rose much more than expected in the world's largest consumer.
Crude oil stocks rose 9.4 million barrels, far more than the 800,000 barrel increase analysts expected. Gasoline stocks fell by 6.2 million barrels, more than the forecast for a 2.7 million-barrel decline.
"The data will present a battle between a very bearish crude figure and a bullish gasoline number and so far, the huge crude build appears to be winning," said analyst Jim Ritterbusch of Ritterbusch & Associates.
US crude rose 30 cents to $114.83 by 1501 GMT, down from an intra-day high of $117.03. London Brent gained 40 cents to $113.65.
The Energy Information Administration report also showed supplies of distillates rose by 500,000 barrels, 100,000 barrels more than expected.
Oil was higher before the US supply report was released as Goldman Sachs reiterated its view that oil would hit $149 a barrel by the end of 2008.
The market has fallen from a record high of $147.27 in July, pressured by evidence that demand is weakening and as strength in the US dollar reduced the appeal of oil and commodities as an inflation hedge.
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