Crude Oil Tumbles Nearly 3% On Gas-Surplus
Crude oil futures fell on Wednesday, extending recent losses, after official data confirmed a huge build in U.S. gasoline inventories.
Crude oil inventories fell by 5.6 million barrels (bbl) in the week to Dec. 1, compared with the analysts ‘ expectations for a decline of 3.4 million barrels. Inventories were at their lowest level since October, 2015.
However, gasoline inventories rose by 6.8 million barrels, more than three times the expectations.
This indicates that the demand for crude oil from refineries will decline in the next few weeks.
WTI light sweet crude oil for January crude was down $1.66, or 2.9%, at $55.96 a barrel.
Employment in the U.S. private sector increased by slightly more than expected in the months of November, payroll processor ADP revealed in a report released on Wednesday.
ADP said private sector employment rose from 190,000 jobs in November, according to brand the end up by 235,000 jobs in October. Economists had expected an increase of about 185,000 jobs.