Oil Extends Drop as U.S. Stockpiles Climb and Dollar Strengthens

Futures in New York fell as much as 1.1 percent, after losing 3.6 percent in the previous two sessions. U.S. crude stockpiles last week rose to the highest level since December, while gasoline reserves expanded at four times the predicted rate. Meanwhile, data for November showed the shale boom drove U.S. output to a record.

U.S. stockpiles of oil stored in tanks and terminals rose by 3.02 million barrels to about 423 million, the fourth increase in five weeks, according to the Energy Information Administration. That compares with a median estimate for a 3 million-barrel gain in a Bloomberg survey. Gasoline inventories expanded by 2.48 million barrels, more than the 600,000-barrel average estimate.

U.S. output reached a record high in November, surpassing Saudi Arabia late last year and nipping at the heels of Russia, the world’s largest producer. That’s helped boost American exports, with the combined shipments of crude, gasoline and distillates expanding to 7.3 million barrels a day in December, the largest volume ever in EIA data.
more at:  https://www.bloomberg.com/news/articles/2018-03-01/oil-holds-losses-as-u-s-stockpiles-climb-more-than-expected