Oil prices dip by 4% on reports of increasing crude oil inventories

24-Sep-09

Light sweet crude for November fell to US$69 on the Nymex. A greater than expected increase in crude oil stocks has pushed up oil prices by 4%. As per data released by the Energy Information Administration, commercial crude oil inventories in USA increased by 2.8 mln barrels in the week ended September 18, as compared to an estimated forecast of a decline of 2.25 mln barrels. Stockpiles are currently at 335.6 mln barrels, and are above the upper boundary of the average range for this time of year. Total motor gasoline inventories surged by 5.4 mln barrels last week. Distillate fuel inventories rose by 3 mln barrels and propane/propylene inventories climbed by 1.3 mln barrels. Total commercial petroleum inventories increased by 8 mln barrels.