Weiss Research analyst, Sean Brodrick, brings Bloomberg’s Mark Shenk up to date on crude oil inventories.Â
Crude oil dropped to a two-week low as a U.S. Energy Department report showed supplies surged, and on signals that American economic growth is slowing.Â
Oil fell as much as 2.3 percent after the report showed stockpiles rose 3.42 million barrels to 366.5 million last week, the highest level since October. Inventories were forecast to gain 2 million barrels, a Bloomberg news survey showed. Lower-than-forecast growth in service industries and employment reduced optimism about the economic outlook.
“Gasoline demand has slipped to the lowest level since the week ended April 1,” said Sean Brodrick, a natural resource analyst with Weiss Research in Jupiter, Florida. “High pump prices are obviously having an impact on demand and may be hurting the overall economy as well.”Â
Crude oil for June delivery fell $1.91, or 1.7 percent, to $109.14 a barrel at 12:52 p.m. on the New York Mercantile Exchange. The contract touched $108.48, the lowest intraday price since April 20.
According to AAA, the nationwide average for regular gasoline at the pump increased $0.015 cents to $3.982 a gallon yesterday, the most since July 25, 2008.
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I was in the Netherlands two weeks ago and when you did the conversion to US gallons and US$ it worked out to just over $9 US /US gallon.
In Alberta Canada we are paying $1.20/litre or $4.53 C per US gallon