Looking to 4Q

Oil prices plunged after the government said crude and gasoline inventories rose much more than anticipated last week. U.S. crude inventories rose by 4.3 million barrels to their highest level since May 1999, the Energy Information Administration said. Gasoline inventories rose by 1.1 million barrels.

“What we’re seeing now is that gasoline inventories are 7% higher than they were last year,” Jacques Rousseau, oil analyst at Friedman, Billings, Ramsey told CNBC’s “Morning Call.”

But “while oil inventories are rising now, you really have to look one or two quarters ahead and we really need a lot of oil in the fourth quarter,” Rousseau warned.

MSN Money