- American crude supplies jumped to highest since July 2017: EIA
- WTI crude drops more than 3%, extending trade-fueled decline
Oil tumbled the most in about three weeks as a report of surging U.S. crude and fuels stockpiles rekindled fears of a glut even as trade tensions cloud the outlook for demand.
Futures in New York slipped as much as 3.2% Wednesday, the biggest drop since May 2, after the U.S. Energy Department said weekly American crude inventories had swelled to the highest since July 2017. Gasoline stockpiles also grew faster than expected, domestic oil production increased and refinery utilization fell to the lowest seasonally adjusted level in five years.
“It’s a tough one to be bullish about,” said Rob Thummel, managing director at Tortoise, a Kansas-based money manager that oversees $21 billion in assets. Aside from a drop in crude imports to the U.S. “everything else here would be a trend that leads to lower oil prices.”