Obama's energy policy has those oil prices going THROUGH THE ROOF I tell ya!
Oil fell after the Energy Department said U.S. crude stockpiles rose to the highest level in almost 22 years and as investors awaited a Federal Reserve announcement on whether it will act to bolster the economy.Futures dropped as much as 2 percent after the report showed supplies rose 2.86 million barrels to 387.3 million last week, the highest level since July 1990. Supplies were forecast to decline, according to analysts surveyed by Bloomberg. The Fed may announce more stimulus measures at the end of a two-day meeting this afternoon in Washington.
“We are down because inventories were plentiful even before today’s report,” said Todd Horwitz, chief strategist at Adam Mesh Trading Group in Chicago. “We will probably take out $80 in the next couple weeks.”
Crude oil for July delivery fell $1.63, or 1.9 percent, to $82.40 a barrel at 10:55 a.m. on the New York Mercantile Exchange. Oil traded at $83.02 before release of the inventory report at 10:30 a.m.
Brent oil for August settlement declined $1.26, or 1.3 percent, to $94.50 a barrel on the London-based ICE Futures Europe exchange. Futures ended yesterday’s session at $95.76, the lowest settlement since January 2011.
Crude stockpiles were forecast to decline 1.3 million barrels, according to the median of 11 analyst estimates in the Bloomberg survey.