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Oil Tumbles After US Fuel Stockpiles Unexpectedly Increase

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(Bloomberg) - Oil tumbled after a government report showed U.S. fuel inventories unexpectedly grew, adding to concerns about oversupply.


Futures dropped 4.4 percent in New York. Gasoline supplies rose 1.21 million barrels last week, Energy Information Administration data released Wednesday show. Analysts surveyed by Bloomberg had forecast a 1-million barrel drop. Demand for the fuel fell during the week that included the Independence Day holiday - usually a peak consumption period - as output increased.


"The stockpile data is driving the market," said Chip Hodge, who oversees a $12 billion natural-resource bond portfolio as senior managing director at John Hancock in Boston. "These are pretty robust product stocks. We’re looking ahead to fall starting before long, and with it lower fuel demand."


http://www.downstreamtoday.com/news/article.aspx?a_id=52767


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