Oil falls 2 %, wipes out 2-day gains

Oil falls 2 %, wipes out 2-day gains
Updated 07 May 2015

Oil falls 2 %, wipes out 2-day gains

Oil falls 2 %, wipes out 2-day gains

NEW YORK: Oil fell 2 percent, wiping out gains from the past two sessions, as euphoria from the first US inventory drawdown in months faded and focus returned to oversupplies in crude and gasoline.
A stronger dollar also weighed on the energy complex, making raw materials became less affordable to holders of the euro and other currencies.
North Sea Brent and US crude futures fell more than $1 a barrel, pressured partly by gasoline’s sharpest one-day drop in more than two weeks.
US crude inventories fell almost 4 million barrels last week, their first weekly decline since January, government data showed on Wednesday. But crude stockpiles still stood at a discouragingly-high 487 million barrels.
While weekly demand for gasoline was higher, stocks of the fuel also rose despite the approach of the peak US driving season.
“There is some disappointment out there that the fundamentals for gasoline and oil products aren’t improving as quickly as some people would like, to provide support for the broader rally in crude that we’ve been seeing,” said Carl Larry, director of business Development for oil and gas at Frost & Sullivan.
Brent futures were down $1.56 at $66.21 a barrel by 11:10 a.m. EDT (1510 GMT), losing all they gained on Tuesday and Wednesday.
US crude futures fell $1.40 to $59.53 a barrel.
Gasoline futures were down 44 cents, their most in 16 days, to trade below $2 a barrel.