Oil prices fell this evening, tracking sliding stock markets, as traders also reacted to rising crude and petrol stockpiles in the US.
US crude sank as low as $77.60 a barrel, but it later traded at $78.14, down $1.41 from Tuesday's close. London's Brent North Sea crude shed $1.30 to $76.62.
The US government's Department of Energy (DoE) announced today that US petrol reserves rose by 1.7 million barrels in the week ending October 23. That indicated weakening energy demand in the US and surprised traders because market expectations had been for a drop of 1.2 million barrels.
Stockpiles of distillates, which include diesel and heating oil, slumped 2.1 million barrels, also heavier than analysts' forecasts. The DoE added that crude reserves climbed by 800,000 barrels, a smaller gain than expected.
Wall Street shares also sank this evening amid concerns over the pace of economic recovery following an unexpected decline in new home sales and dampening consumer sentiment.
