(Bloomberg) -- Crude oil fell to a two-month low after a government report showed that U.S. fuel inventories climbed as refineries bolstered operating rates.
Gasoline stockpiles rose 2.25 million barrels to 216.3 million, the report showed. Supplies of distillate fuel, a category that includes heating oil and diesel, increased 1.62 million barrels to 167.3 million. Refineries operated at 81.1 percent of capacity, up 1.4 percentage points from the previous week and the highest level since October.
"Whenever refiners increase operating rates we get big builds in the products," said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. "As long as we get no indication that demand is recovering, this market will remain under pressure."
Crude oil for January delivery fell $1.95, or 2.7 percent, to $70.67 a barrel on the New York Mercantile Exchange, the lowest settlement since Oct. 7. Prices dropped for a sixth consecutive day, the longest decline since July. |