Oil prices fall amid rising fuel inventories

US Gasoline Inventories Weighed on Crude Oil Futures

World oil prices up

The magnitude of the build overshadowed expectations about shrinking USA supplies of stored crude.

Oil prices dropped more than 2 percent on Wednesday amid a sharp rally in US inventories of refined fuel. Still, "I don't think gasoline demand is going to fall apart all of a sudden". Now trade is carried out by the exchange's two divisions, the NYMEX Division and the COMEX Division, the first one designed for trades of oil, gas, platinum, palladium, ethanol, coal, electricity and carbon dioxide emissions, the second one for gold, silver, copper and aluminum. The cartel's output dropped last month to the lowest in half a year.

Goldman Sachs Group predicted earlier this week that oil prices will retain their strength, at least through 2018. Bank of America Merrill Lynch estimated the global benchmark, Brent crude, will rise to $70 a barrel by the middle of 2018.

Meanwhile, analysts said investors tended to take profit after oil prices posted solid gains in the previous session.

U.S. West Texas Intermediate crude futures settled down $1.66, or 2.9 percent, to $55.96 a barrel. Brent was trading down 0.75% on the day at $62.92. Brent oil for February gave up $1.64, or 2.6%, to $61.22 a barrel on the ICE Futures Europe exchange, its lowest since November 2.

WTI light sweet crude oil for January crude was down USD1.66, or 2.9%, at USD55.96 a barrel.

Gasoline stockpiles jumped by 6.8 million barrels for the week, while distillate stockpiles added 1.7 million barrels, according to the EIA.

The API data showed a jump of 9.2 million barrels in gasoline stockpiles, while inventories of distillates rose about 4.3 million barrels, sources said.

The U.S. Energy Information Administration reported Wednesday that domestic crude supplies fell (http://www.marketwatch.com/story/eia-reports-a-fall-in-us-crude-supply-but-gasoline-stocks-rise-more-than-expected-2017-12-06) 5.6 million barrels for the week ended December 1.

The American Petroleum Institute (API) reported on Tuesday that U.S. crude stocks fell by 5.481 million barrels, more than the 4.1 million decline seen.

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