LONDON, May 9: World oil prices tumbled by more than a dollar on Wednesday as government data showed a surge in US crude inventories and the first rise in 13 weeks for stockpiles of American motor fuel, analysts said.
In London, the price of Brent North Sea crude for June delivery dived $1.13 to $64.41 per barrel in electronic deals.
New York's main oil futures contract, light sweet crude for delivery in June, shed $1.25 to $61.01 per barrel in US floor trading.
The heavy falls came after the US Department of Energy published its latest weekly snapshot of inventories.
“The report was bearish, showing the first (gasoline) supply increase in about three months,” Altavest trader Tom Hartmann said.
The DoE said that stocks of gasoline (petrol) rose by 400,000 barrels in the week ending May 4. Analysts had forecast a rise of 150,000.
Stocks of gasoline have been a major focus for the market in recent weeks in the run-up to the peak demand season for motor fuel which begins at the end of the month and sees many Americans taking to their cars on summer vacation.
Elsewhere on Wednesday, the DoE said that crude inventories increased by 5.6 million barrels last week, when analysts had forecast a rise of only 875,000.
“From an economics point of view the entire report was bearish, with higher stocks in every major category,” Citigroup analyst Tim Evans said.—AFP
