Oil Slumps on Smaller Inventory Fall

Oil prices fell sharply on Wednesday after a U.S. government report showed a smaller-than-expected decline in stockpiles last week as higher imports and slower refinery activity muted the effects of Hurricane Dennis.

U.S. light, sweet crude oil futures dropped $1.36 to $56.10 a barrel, the lowest since June 30, while London Brent crude fell $1.01 to $56.35 a barrel.

The U.S. Energy Information Administration said Wednesday morning that crude oil inventories in the world’s largest consumer fell 900,000 barrels, far less than anticipated thanks to higher imports and slower demand from refineries.
Reuters