The Oil Tumble Continues, Prices Reaching Their Lowest Levels In A Month
Oil fell the most in nearly a month after a government report revealed US crude stockpiles are even larger than expected.
Crude inventories jumped by 2.28 million barrels, according to the Energy Information Administration, instead of the 1.3 million barrel gains expected by analysts. On top of that imports rose to the highest levels in four years while output declined, Bloomberg reports.
Almost as if on cue, West Texas Intermediate delivery for October dropped 3.6% to $44.70 a barrel on the New York Mercantile Exchange. That’s the biggest drop since Aug. 1 and experts are beginning to agree that OPEC needs to do something to control the situation. Rob Haworth at US Bank Wealth Management says the fundamentals simply aren’t strong enough to let the market run its course. [Bloomberg]