WTI Crude Drops As U.S. Oil Stockpiles Gain To Highest Level In More Than 22 Years

[Purveyor]

Crude extended declines after a government report showed that U.S. oil stockpiles climbed to the highest level in more than 22 years. West Texas Intermediate’s discount to Brent narrowed for a second day.

Futures in New York fell as the Energy Information Administration said inventories rose 2.71 million barrels to 388.6 million last week, the highest level since 1990. The report was projected to show an advance of 2.05 million, according to a Bloomberg survey. Crude production was unchanged near the highest level since 1992. Exxon Mobil Corp.’s Pegasus pipeline, linking the U.S. Midwest to Texas refineries, will remain shut until regulators are satisfied with repairs.

“We’re looking at near record crude supplies,” said Carl Larry, a commodities broker at Atlas Commodities LLC in Houston. “We should be trading lower on the fundamentals.”

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Surging Production

U.S. crude oil production has surged as the combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies trapped in shale formations in states including North Dakota, Texas and Oklahoma.

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http://www.bloomberg.com/news/2013-04-03/wti-crude-drops-as-u-s-oil-stockpiles-gain.html

[just1voice]

1. “We should be trading lower on the fundamentals.” LOL, in a real market.

We live in an era of corruption, supply and demand don't mean a thing and haven't for years.

[L0oniX]

2. You wouldn't know it by the price of gas. n/t

[1-Old-Man]

3. despite these large inventories we continue to pay Bush-era prices for gasoline

[jwirr]

4. I cannot help but to wonder if this is due to the oil industry trying to prevent any laws that would

take their subsidies away? Wouldn't be the first time they used supply and demand to get what they want.