Crude futures settled below 125 U.S. dollars a barrel for the first time since June 5 on Wednesday as the weak demand reflected in the more-than-expected increase in U.S. fuel stockpiles.
Light, sweet crude for September delivery dropped 3.98 dollars to settle at 124.44 dollars a barrel on the New York Mercantile Exchange. Futures touched 124.30 dollars a barrel, setting the lowest intraday trading price in seven weeks.
The U.S. Energy Department reported Wednesday that, in the week ended July 18, gasoline inventories jumped by 2.9 million barrels, much more than the half a million barrels previously predicted by the market. Also, stockpiles of distillate fuel, including heating oil and diesel, rose by 2.42 million barrels.
Meanwhile, the reports showed that the U.S. domestic fuel demand dropped to a lowest point since January 2007 with average 19.9 million barrels a day, signaling that the weak economy and high energy prices have curbed demand.
The dollar strengthened against the euro on Wednesday, and the ease of concerns about production disruption by the Hurricane Dolly also helped to bring down the crude oil price.
In London, the Brent crude for September delivery fell 4.26 dollars to settle at 125.29 dollars a barrel on the ICE Futures Exchange.
Source: Xinhua
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