U.S gasoline inventories rose by 7.9 million barrels last week, according to data from the Energy Department, the largest one-week increase in 11 years. Stocks of distillate, which includes heating oil and diesel, rose by 3 million barrels.
Rising inventories were accompanied by a 3.4% decline in domestic fuel usage, suggesting that production is more than meeting demand as consumers and businesses hold off on spending amid worries about the broader economy.
"The market is well supplied," said Andy Lipow, president of Lipow Oil Associates, an energy consultancy. "This trend is going to continue over the next couple weeks, and should put further pressure on gasoline prices."
Gasoline futures for January delivery fell 5.12 cents to a three-week low of $2.6378 a gallon on the New York Mercantile Exchange ...
After fuel-supply disruptions earlier this year in California and later in the Northeast following Hurricane Sandy, consumers and energy investors had grown concerned that oil refineries were having trouble producing enough fuel.
But refining facilities in the Midwest and along the Gulf Coast have begun dialing up their capacity to near record levels in recent weeks in order to take advantage of cheaper oil prices.
The increased activity, coupled with weak demand for gasoline, has weighed on prices at the pump. U.S. retail gasoline prices have fallen 9 cents from a month ago to $3.38 a gallon, according to AAA.
year end profit taking plus back looking api/doe inventory numbers. you get the knock on effect of a hedge fund selling a "basket" of these stocks at teh same time and you get todays "air drop'. tso 8+ % off the high of the week is pretty insane. bottom line, people are worried about taxes and obama, but i am not sure that is a good reason to dump stocks at any price.