The price of US crude oil fell to a two-month low today after a US government report showed crude inventories rose much more than expected, but later pared many of its losses.
The US Energy Information Administration report showed crude inventories rose 4.11 million barrels last week, outpacing a forecast for a build of 200,000 barrels.
Petrol inventories were 2.27 million barrels higher, at odds with forecasts of a small drawdown. Distillate stocks increased by a higher than expected 1.76 million barrels.
US crude for October delivery was down 7 cents on the day to $71.56 a barrel this evening, after earlier falling to as low as $70.76, the lowest price since early June. October ICE Brent rose 20 cents to $73.11 a barrel.
Oil was also under pressure from data showing new US single-family home sales slumped to the slowest pace on record in July and orders for costly durable goods were weak, heightening fears the economy was at risk of a new downturn.
