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Commodity Daily News
Crude Tumbles 3% on U.S. Inventory Data
Thursday, 4 Jun 2009
Crude Oil prices declined Wednesday by about 3.5%, to $66.15 a barrel, pulling back after government data showed an unexpected increase in inventories last week. The Energy Information Administration reported that U.S. commercial Crude Inventories for the week ending May 29 rose to 366 million barrels, up 2.9 million barrels. Crude Oil was also pushed lower by a bullish U.S Dollar.
Despite Wednesday's weakness, Oil prices have surged 60% over the last 3 months. Analysts state that Oil has surged in recent weeks on speculation and a weak Dollar, not on actual demand. This was apparently not enough to hold the recent bullish Oil prices, as yesterday's inventory report underscores this.
