The price of crude oil dropped Wednesday after the federal government indicated supplies of the energy commodity increased, demand for it fell and retail sales did not grow last month in the U.S., which is the globe's top consumer of oil, Bloomberg reports.
The Commerce Department noted August retail sales did not grow from July to August while the Energy Department stated inventories of gasoline last week climbed by 1.94 million barrels.
"The market is unsettled because the product builds were huge, especially given that refinery runs dropped," Jason Schenker, president of Texas-based advisory Prestige Economics, told Bloomberg. "The retail sales numbers are another sign that the U.S. economy is stagnating, which is a big concern for the oil market."
At 4:48 p.m. on Wednesday, crude oil futures increased 0.1 percent, an 11 cent rise to $112 per barrel.
The Associated Press reports the price of oil on Tuesday was at its highest level in four weeks. One significant factor that is likely to influence the price of oil is when the oil-rich North African nation of Libya will resume its production, which has progressively tapered since earlier this year when efforts began to eject the leader.
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