Oil tumbles on unexpected increase in gasoline stocks

08:11, October 29, 2009      

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Crude prices tumbled more than two U.S. dollars on Wednesday after government report showed an unexpected increase in gasoline inventories, spurring worries about the energy demand recovery.

Light, sweet crude for December delivery fell 2.09 dollars, or 2.6 percent, to settle at 77.46 dollars a barrel on the New York Mercantile Exchange.

According to the U.S. Energy Department's Energy Information Administration (EIA), gasoline inventories increased by 1.7 million barrels in the week ending Oct. 23, contrasting the previous prediction for a decline.

Adding to oil's losses was the fact that the dollar kept strengthening against most of the major currencies, reducing hedge appeal of commodities.

In London, Brent Crude for December delivery fell 2.05 dollars at 75.87 dollars a barrel on the ICE Futures exchange.

Source: Xinhua
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