Crude Oil Falls as Supplies of Heating Oil and Diesel Increase

Crude oil fell for a third day as refiners increased production of heating oil and diesel, bolstering inventories.

Stockpiles of distillate fuel, a category that includes heating oil and diesel, rose 1.3 million barrels to 107.7 million, an Energy Department report showed. Crude oil initially rose after the agency’s report showed that supplies fell last week. Crude oil inventories dropped 3.1 million barrels to 330.8 million, according to the department.

“Distillate inventories rose because of the surge in production,” said Michael Lynch, president of Strategic Energy and Economic Research, a Winchester, Massachusetts-based consultant. “The refining sector is showing that it’s flexible and has the ability to shift production to the products that are needed.”
Bloomberg