Published: Fri, December 08, 2017
Markets | By Erika Turner

Oil Dips Toward $57 on Signs US Gasoline Stockpiles Expanded

Oil Dips Toward $57 on Signs US Gasoline Stockpiles Expanded

Futures dropped 0.4 percent in NY after rising 0.3 percent on Tuesday.

China is the second-largest economy in the world behind the U.S. and data published late on Tuesday by the American Petroleum Institute on gasoline inventories suggested "no one travelled on Thanksgiving", Flynn said. That will be the biggest gain since January 2016 if replicated in government data due on Wednesday. The surprise data hit prices of both crude and products in a market that was tilted bullish and vulnerable to a selloff, analysts said.

Soaring U.S. output threatens to undermine efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation to bring production and demand into balance following years of oversupply.

"Investors will continue to watch developments in the US after the OPEC deal", said David Lennox, a commodity analyst at Fat Prophets in Sydney.

Market participants noted that while it was not uncommon for gasoline stockpiles to expand in the December period, the massive build in supplies pointed to possible weakness in gasoline demand.

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Sarah Huckabee Sanders, the White House press secretary, insisted the Bloomberg report was wrong at her Tuesday press briefing. That figure includes a $170-million loan Trump took out to finish a hotel in Washington.

"If they do adhere, that will keep the oil price elevated". Total volume traded was about 42 percent below the 100-day average. "There is a general theme of selling back things that have recently been outperforming, tech being the obvious one.so if you are looking across the asset spectrum and looking to sell things that have done well, then oil fits into that category".

Brent for February settlement lost 16 cents to $62.70 a barrel on the London-based ICE Futures Europe exchange after adding 41 cents on Tuesday. It marks the lowest close for the benchmark since November 16 and the biggest one-day decline for WTI since October 6.

Crude oil prices gained in Asia on Thursday with the market shrugging off downbeat U.S. weekly inventory data on refined products and taking benchmarks higher after sharp falls overnight.

US gasoline stocks rose by 6.8 million barrels and distillate inventories were up 1.7 million barrels, government data showed, both exceeding expectations in a Reuters poll.

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