The price of oil fell again today with new government data showing that U.S. crude supplies increased last week, a sign that demand remains weak.
Benchmark crude for October delivery slipped 87 cents to $71.18 a barrel in trading on the New York Mercantile Exchange.
The Energy Department reported today that U.S. crude stockpiles rose by 200,000 barrels for the week ending Aug. 21. The same report a week ago showed a large and unexpected draw on oil, which sent prices soaring.
The price for a barrel of oil briefly touched $75 on Tuesday before falling 3 percent for the day — a common occurrence in the volatile energy markets of late. In London, Brent crude fell 67 cents to $71.15.
“Yesterday’s surprising sell-off could end up being a one-time curiosity or the start of a rejection of prices that most analysts feel are far too high, given existing supply and demand factors,” the energy consultancy Cameron Hanover said in a note to clients Wednesday.
For consumers, it may be anyone’s guess where gasoline prices are going to go heading into next year, but heating bills for those who use natural gas could be a bargain. Natural gas futures continue to trade near seven year lows.
Motorists are still enjoying gasoline that is closer to prices from 2005 than what they were paying last summer.
At the pump, retail gas prices changed little overnight, falling less than a penny to a new national average of $2.622 a gallon. A gallon of regular unleaded is 12.2 cents more expensive than it was a month ago, but it’s $1.05 cheaper than last year.
The government also said Wednesday that U.S. gasoline stockpiles fell by 1.7 million barrels last week.
In other Nymex trading, gasoline for September delivery fell about 1.8 cents to $1.9888 a gallon and heating oil fell 2.23 cents to $1.8336 a gallon. Natural gas edged down by 4.4 cents to $2.838 per 1,000 cubic feet. (AP)
