(For Bloomberg fair value curves, see CFVL <GO>)
Oct. 17 (Bloomberg) -- West Texas Intermediate dropped after an industry group reported an increase in U.S. inventories last week and as more Americans than forecast filed applications for unemployment benefits.
Prices dropped as much as 1.5 percent. Supplies climbed by 5.94 million barrels, according to the American Petroleum Institute yesterday. Jobless claims reached 358,000 in the week ended Oct. 12, the Labor Department reported. Prices rose 1.1 percent yesterday before Congress voted to end the government shutdown and raise the debt limit.
"The market is reacting to the big build that we saw in oil inventory from the API," said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. "The market pretty much priced in the fact that the government would come back to work. Now we are focusing on more fundamental things."
WTI for November delivery fell $1.23, or 1.2 percent, to $101.06 a barrel at 9:30 a.m. on the New York Mercantile Exchange. The volume of all futures was 2 percent above the 100- day average.
North Sea Brent for December settlement slid 87 cents, or 0.8 percent, to $109.72 a barrel on the London-based ICE Futures Europe exchange. The November contract expired yesterday. Volume was 33 percent below the 100-day average. December Brent crude was at a premium of $8.50 to the equivalent-month WTI contract. The gap between November contracts was $8.57 yesterday.
Crude inventories at Cushing, Oklahoma, the delivery point for futures traded on the Nymex, increased 291,000 barrels, the API said.
Gasoline supplies dropped by 2.21 million and distillate fuel, including heating oil and diesel, declined by 1.32 million. The Energy Information Administration, the Energy Department’s statistical arm, won’t release weekly stockpile data today because of the government shutdown.