Futures Market News
Crude oil futures fall after U.S. reports inventories grow
Apr 18, 2012 02:35 PM
Crude oil futures reversed three consecutive days of gains on Wednesday after the U.S. Department of Energy indicated inventories of the energy commodity are larger than anticipated, according to Bloomberg.
Shortly after the federal government noted on Wednesday that supplies last week grew by 3.86 million barrels, the price of crude oil futures fell by as much as 1.8 percent. The growth represents more than twice the estimates indicated by a Bloomberg poll of analysts.
"It's another week of the battle of large numbers," partner John Kilduff with energy hedge fund Again Capital of New York told the news service. "The refinery industry continues to operate at sub-optimal levels and crude oil of course is going to build if they are not processing it."
At 1:21 p.m. on Wednesday, crude oil futures fell 0.73 percent, an 87 cent slide to $117.91 per barrel.
Supplies of the energy commodity drove as high as 369 million barrels, representing the highest it has been since week ended May 27 of last year, according to the energy department.
Reuters reports the increase in inventory marked the biggest gain since February 2009.
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