Oil tumbles to below $46 after U.S. inventory report disappoints

U.S. oil prices tumbled below $46 a barrel after a government report showed the nation’s crude inventories didn’t decline as much as traders expected.

In its weekly report, the Energy Information Administration said domestic crude inventories fell by 2.22 million barrels in the week ended July 1. A Bloomberg survey of analysts showed the market expected a draw of 2.5 million barrels, and the American Petroleum Institute had earlier estimated a decline of 6.7 million barrels.

Crude stocks have dropped for nearly two months, a sign U.S. oil production is still in decline after a ruinous energy glut crushed prices and forced drillers to cut 100,000 jobs across Texas. WTI for August delivery fell $2.17 to $45.26 a barrel after the EIA report, reversing earlier gains.

http://fuelfix.com/blog/2016/07/07/oil-tumbles-after-u-s-inventory-report-disappoints/