Oil Accelerates Selloff After EIA Data

Oil Accelerates Selloff After EIA Data

NEW YORK (DTN) -- New York Mercantile Exchange oil futures accelerated their downside move after the Energy Information Administration reported unexpected builds for domestic crude oil and distillate supplies and a draw for gasoline that was in line with expectations.

EIA said total crude stockpiles surged 2.3 million bbl during the week-ended Aug. 26 to 525.9 million bbl, as refinery crude inputs, a proxy for demand, fell 64,000 bpd to 15.6 million bpd.

Distillate supplies rose 1.5 million bbl, EIA said, while the market expected supplies to hold steady. Demand for the fuel edged up 48,000 bpd.

Gasoline stocks eased 691,000 bbl, EIA said, nearly matching an expected 500,000 bbl draw, even as demand fell 148,000 bpd.

At 10:55 AM ET, NYMEX October West Texas Intermediate crude futures were down $1.18 at $45.17 bbl, near a fresh two-week spot low of $45.12. October Brent crude on the IntercontinentalExchange declined $1.12 to $47.25 bbl, trading off a fresh two-week low of $47.22, with the November Brent contract down $1.28 at $47.45.

NYMEX September ULSD futures tumbled 4.77cts to $1.4234 gallon, a two-week low, while the October ULSD contract down 4.61cts to $1.4386. NYMEX September RBOB futures fell 2.19cts to $1.4264 gallon, trading off a two-week low of $1.4225, with the October contract down 1.99cts at $1.3471.

The ICE October Brent crude and NYMEX September ULSD and RBOB futures contracts expire at the 2:30 PM ET close of regular trade this afternoon.

Oil futures are also under selling pressure from a stronger dollar and doubt that the Organization of Petroleum Exporting Countries will freeze output when they meet next month.