Crude Oil's Biggest Tumble Since March Shown in Three Charts - Bloomberg:
"Oil’s 5 percent tumble Wednesday, the biggest slide since March, followed government data that showed U.S. crude and fuel stockpiles unexpectedly soaring at a time of year when they normally decline.
Total U.S. inventories of crude oil and products such as gasoline and diesel fuel surged the most since 2008 last week, according to the Energy Information Administration. The 15.5 million-barrel jump took investors by surprise, sending the market off a cliff. What caused the increase? Higher imports of crude, as well as a sharp decline in exports. Add in a 505,000 barrel a day drop in gasoline demand and you end up with growing stockpiles.
“It’s about total stocks, crude and products, because that’s what the world wants to see, that’s what OPEC wants to see," Michael Wittner, head of commodities research at Societe Generale SA in New York, said by telephone. "A week ago, you could say three of the past four weeks, it has come down, you are starting to see a trend develop. And then today, boom, the whole thing falls apart.”"
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