Oil prices settle at 19-month low

NEW YORK – Oil prices tumbled to settle at a 19-month low Wednesday after the government reported rising inventories of gasoline, heating oil and diesel fuel.

Crude oil stockpiles fell for the fourth straight week, according to a weekly report by the Energy Information Administration. But inventories of refined products grew faster than market analysts had expected, pressuring prices lower.

Light, sweet crude for February delivery dropped $1.62 to settle at $54.02 a barrel on the New York Mercantile Exchange, after sinking to $53.89 in earlier trading. The settlement was the lowest since June 10, 2005.

Refineries in the U.S. are running at more than 91 percent capacity amid strong imports and weaker demand for products. That has “been a big anchor on the market,” said Michael Guido, director of commodity hedge fund marketing with Societe Generale.

AP