Crude Oil Drops on Optimism Increasing Output Will Boost Supplies in U.S.

Crude oil tumbled on speculation that U.S. supplies of heating fuels will be sufficient to meet winter needs as inventories rebound with rising global output.

U.S. crude stocks rose 1.9 million barrels to 291.5 million in the week ended Nov. 5, a government report showed. Daily imports exceeded 10 million barrels for a sixth straight week. Prices rose yesterday from a seven-week low after the report showed heating fuel supplies fell for an eighth straight week.
“It’s a matter of time before we start building those stocks again,” said Robert Montefusco, a broker at Sucden (U.K.) Ltd. in London. “Unless we get any major cold snaps, supply concerns will ease. There’s a lot of crude coming in.”

Bloomberg