Oil Slumps With U.S. Gasoline Supply Rising Most Since February - Bloomberg

Oil Slumps With U.S. Gasoline Supply Rising Most Since February - Bloomberg

West Texas Intermediate for May delivery declined 83 cents to $58.50 a barrel at 12:29 p.m. in New York Brent for June settlement lost 74 cents to $62.00 a barrel Oil extended losses alongside a strengthening dollar while the biggest U.S. gasoline supply increase in two months offset a drop in crude inventories. Futures in New York furthered their decline to as much as 2% on Wednesday, in tandem with a rising dollar, which reduces the appeal of commodities priced in the currency. U.S. government data showed domestic gasoline stockpiles rose more than 4 million barrels last week amid a surge in imports. Still, crude inventories fell for a second week, bringing stockpiles to a five-week low, according to the Energy Information Administration data. “The size of the builds on the refined side may have been more than the market was expecting, given the fact that mobility continues to increase in the U.S.,” said Brian Kessens, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “The U.S. has been making really good Covid progress, while challenges remain in Europe surrounding the vaccine rollout and the spike in cases.”