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Wed Jun 20, 2012, 12:13 PM

Oil Extends Decline as Inventories Reach Most Since 1990 [View all]

Source: Bloomberg

By Mark Shenk - 2012-06-20T15:56:40Z

Oil fell after the Energy Department said U.S. crude stockpiles rose to the highest level in almost 22 years and as investors awaited a Federal Reserve announcement on whether it will act to bolster the economy.

Futures dropped as much as 2.5 percent after the report showed supplies increased 2.86 million barrels to 387.3 million last week, the highest level since July 1990. Supplies were forecast to decline, according to analysts surveyed by Bloomberg. The Fed may announce stimulus measures at the end of a two-day meeting this afternoon in Washington.

“We are down because inventories were plentiful even before today’s report,” said Todd Horwitz, chief strategist at Adam Mesh Trading Group in Chicago. “We will probably take out $80 in the next couple weeks.”

Crude oil for July delivery fell $2.13, or 2.5 percent, to $81.90 a barrel at 11:48 a.m. on the New York Mercantile Exchange. Oil traded at $83.02 before release of the inventory report at 10:30 a.m. The July contract expires at the close of trading today. The more actively traded August contract dropped $2.23, or 2.6 percent, to $82.12.

Read more: http://www.bloomberg.com/news/2012-06-20/oil-declines-before-fed-decision-projected-supply-drop.html

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Reply Oil Extends Decline as Inventories Reach Most Since 1990 [View all]
Purveyor Jun 2012 OP
taught_me_patience Jun 2012 #1
joycejnr Jun 2012 #2
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happyslug Jun 2012 #7
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goclark Jun 2012 #5
sybster1000 Jun 2012 #12
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Shadowflash Jun 2012 #6
happynewyear Jun 2012 #8
eggplant Jun 2012 #9
Purveyor Jun 2012 #11
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RobertEarl Jun 2012 #13
wordpix Jun 2012 #15
Purveyor Jun 2012 #16
wordpix Jun 2012 #17