Oil swings as U.S. report shows demand falling amid surging prices
BNN Bloomberg
Oil fluctuated after a U.S. government showed crude and gasoline inventories rising as high energy prices continue to propel inflation.
West Texas Intermediate teetered between gains and losses to trade near US$96. US gasoline stockpiles rose 5.8 million barrels last week, the most since January. Fuel stocks are building as high prices appear to be shifting consumer habits.
US consumer prices jumped in June by 9.1 per cent year-on-year, the largest gain in over four decades. Market participants fear the report will keep the Federal Reserve geared for another big interest-rate hike and lead to possible economic slowdown.
“The oil market might be tight, but high energy costs are clearly leading to crude demand destruction,” said Ed Moya, senior market analyst at Oanda Corp.
