Oil prices plunged Wednesday in New York as concerns high prices will hurt demand overpowered a brief rally sparked by reports of a big drop in U.S. gasoline inventories last week.
Bloomberg reports a drop of $3.53 in Brent Crude (UK) and $2.83 in Cushing (Texas). Also reported is a 1.3 cent change in wholesale gasoline.
This in spite of the DOE reporting a one week drop of 5 million barrels in gasoline stocks. Distillate stocks were up 2.2 million barrels, so perhaps that helped with heating oil worries going into fall. Still, even a drop in oil prices makes me wonder about this market’s rationality.