OIL SLIPPED to a three-month low to under $118 a barrel yesterday as rising US crude inventories heightened concerns of a demand slowdown in the world's top consumer.
US light crude traded down $1.69 at $117.48 a barrel in afternoon dealings after hitting $117.11, the lowest level since early May and $30 off the record $147.27 a barrel struck on July 11th. London Brent crude fell $1.03 to $116.67 a barrel.
Crude oil stocks rose by 1.7 million barrels in the week to August 1st, according to data from the US Energy Information Administration, well above analysts' forecasts for a 300,000-barrel build.
Stocks of distillate fuels, including heating oil and diesel, rose by 2.8 million barrels, also above forecasts, while petrol inventories fell by a steep 4.4 million barrels against forecasts of a 1.2 million barrels drop.
US energy stockpiles have been climbing in recent weeks amid mounting evidence that surging pump prices and an economic slowdown are hitting fuel consumption.
Adding to weakness, tropical storm Edouard, the fifth named storm of the 2008 Atlantic hurricane season, hit the Texas coast without causing any major disruptions to US energy operations.
Oil companies were returning workers to offshore rigs in the Gulf of Mexico and resuming normal operations at refineries along the coast.
- (Reuters)
