Oil Below $70, EIA Reports Rising Supplies, Declining Demand
Oct 17th, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Thursday, oil sank below the $70 benchmark, with crude for November delivery plummeting to close at $69.85/barrel, down $4.69. November reformulated gasoline fell 16 cents, to $1.622/gallon.
In its weekly inventory report, the Energy Information Administration said that crude supplies rose 5.6 million barrels for the week ended October 10, bringing the total gain to 18 million barrels over the past three weeks.
Gasoline supplies climbed 7 million barrels, for a 3-week gain of 15.1 million barrels, while distillates dropped another half million barrels, and are now down 10.2 million barrels in seven weeks.
Demand for all petroleum products over the past four weeks averaged 18.6 million barrels per day, down 8.9% from the same time a year ago, the EIA said, while motor gasoline demand averaged almost 8.8 million barrels per day, down 5.2% year over year.
“Gasoline production and imports are significantly outpacing gasoline demand,” wrote Chris Lafakis, of Moody’s Economy.com, and “inventories will further expand as refineries recover.”
Source: Oil below $70 - EIA reports rising supplies, declining demand
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