Gasoline Drags Crude Oil Down
Crude dropped today, following gasoline in decline. Gasoline had a significant rally last week and now is in a correction mode, dragging crude oil along. On top of that, analysts predict that tomorrow’s government report may show that US inventories of crude rose by 1.5 million barrels.
Earlier, gasoline supply was restricted as refineries were closing amid the threat of Hurricane Isaac. Now, refineries are starting to resume production, resuming output and putting downward pressure on gasoline. The commodity may yet rebound in case report shows that stockpiles did not grow. Such event should be beneficial for crude oil.
Crude oil fell from $92.31 to $91.57 per barrel as of 23:17 GMT on NYMEX today. November futures for delivery of gasoline fell as much as $0.0509 (1.7 percent) to $2.8692 per gallon.
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