Crude, gasoline inventories rise, as does demand

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Crude, gasoline inventories rise, as does demand

Diesel futures fell 4.6 cents, or 2.32%, to $1.9391 a gallon.

"Oil prices could not escape the risk-off mood in financial markets".

The crude market remains in positive territory for the year however, even after Wall Street stocks on Monday posted their largest one-day fall since late 2011. The recent gross domestic product (GDP) numbers from most of the economies across the world point to higher growth during the last few quarters.

The economic and political impacts of soaring United States output are breathtaking, cutting the nation's oil imports by a fifth over a decade, providing high-paying jobs in rural communities and lowering consumer prices for domestic gasoline by 37 percent from a 2008 peak.

Gasoline futures fell 2.98 cents, or 1.65%, to $1.7754 a gallon.

"Interest rates are still manageable".

"With so much volatility in the equity markets people don't trust that rebound".

"There was a crowded trade on the long side of this market for a long time".

The dollar index, which measures the performance of U.S. dollars against a basket of six major currencies, remains at 90.21 points.

The dollar index rose 0.76 per cent, with the euro down 0.82 per cent to $1.2275.

On Wednesday U.S. equity futures fell and the dollar rose. Spot gold dropped 0.9 per cent at $1,313.67 per ounce.

China's crude oil and other liquids production dropped the most among non-OPEC nations in 2016, and the EIA expects production to have booked the second-biggest such drop past year. WTI hit a low of $61.33, the lowest since January 5. In June, the price bottomed at $42 a barrel and then started a rally that saw it reach a three-year high of $66 last month.

Crude oil futures fell sharply Wednesday, extending a recent slump after data showed USA oil inventories dropped for a second week in a row.

The U.S. exported about 700,000 barrels of light domestic crude in December to the U.A.E., the Census Bureau reported Tuesday. This was less than expected, but that was in part because of a surprising increase in refining activity that boosted fuel inventories headed into the seasonally slow spring.

USA crude inventories C-STK-T-EIA rose 1.9 million barrels in the week to February 2, to 420.25 million barrels. Shipments from US ports have increased from a little more than 100,000 barrels a day in 2013 to 1.53 million in November, traveling as far as China and the United Kingdom. With futures trading at about double what they were in early 2016, fear is growing that higher prices will spark further increases in shale supply.

In the two years since Washington lifted a 40-year ban on oil exports, tankers filled with USA crude have landed in more than 30 countries, ranging from massive economies like China and India to tiny Togo.

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