Oil falls below $70 on fuel build-up

14:11, October 08, 2009      

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Crude prices fell below 70 U.S. dollars a barrel on Wednesday after government report showed a bigger-than-expected rise in fuel inventories.

Light, sweet crude for November delivery lost 1.31 dollars to settle at 69.57 dollars a barrel on the New York Mercantile Exchange.

The contract opened higher and touched an intra-day high of 71.76 dollars a barrel in the morning session before taking a dive immediately after the weekly report from the U.S. Energy Information Administration (EIA).

According to the EIA, gasoline stockpiles jumped 2.9 million barrels in the week ending Oct. 2 while distillate inventories, which include diesel and heating oil, rose by 700,000 barrels, far more than analysts had expected.

The same report showed that crude stock dropped by 1 million barrels last week, against analysts' prediction for a build, but it failed to stop the prices from falling.

In London, Brent Crude for November delivery fell 1.36 dollars to settle at 67.20 dollars a barrel on the ICE Futures exchange.

Source: Xinhua
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