Oil Slips as U.S. Crude Stockpiles Surge Most in 14 Years

(Bloomberg) by Mark Shenk   – Oil fell after a government report showed that U.S. crude supplies surged the most in almost 14 years. Inventories rose 10.1 million barrels in the week ended Jan. 16, the biggest gain since March 2001, according to the Energy Information Administration. Refineries operated at 85.5 percent of their capacity, the lowest level since April 2013 as units were idled for maintenance. “The 10 million-barrel plus increase was a big surprise,” Gene McGillian, a senior analyst at Tradition Energy in Stamford, Connecticut, said by phone. “The big drop in refinery runs left nowhere for the crude to go but storage. This suggests that we’ll see more big supply builds in the future with production at such high levels.” Oil Prices West Texas Intermediate crude for March delivery slipped .47, or 3.1 percent, to settle at .31 a barrel on the New York Mercantile Exchange. The volume of all futures traded was 34 percent above the 100-day average at 2:52 p.m. Brent for March settlement fell 51 cents, or 1 percent, to end the session at .52 a barrel on the London-based ICE Futures Europe exchange. Volume was up 17 percent from the 100-day average. The … continue reading

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