NYMEX crude drops $1.68/b on build expectations

摘要

NYMEX March crude settled $1.68 lower nat $86.19/barrel Tuesday, breaking nbelow key support at the $87.25 level as nequities waned and expectations of US npetroleum inventory increases weighed non prices. February heating oil settled n2.64 cents lower at $2.5929/gal and nFebruary RBOB settled 7.05 cents lower nat $2.3427/gal. Expectations of increases nin US petroleum inventories underpinned nthe market, while mixed economic data nprovided little direction, analysts said. “Oil nprices took a drop on news that UK gross ndomestic product fell 0.5% in the three nmonths through December,” said PFGBest nanalyst Phil Flynn in a note. “The number nfailed to meet expectations of 0.5% nincrease and shows that the UK economy nmay be sputtering.” Analysts said that an nunexpected jump in US consumer confi-ndence -- to its highest level in eight months n-- was partially offset by a drop in US home nprices, which fell 1.6% in November from na year-ago, according to the S&P/Case-nShiller index of home values. But attention nwas mainly focused on impending weekly ninventory data. Analysts polled by Platts nare expecting a build of 1.7 million bar-nrels in this week’s oil inventory reports nfrom the American Petroleum Institute and nUS Energy Information Administration. US ngasoline stocks are expected to rise by n2.1 million barrels.