Oil prices slumped on Wednesday after government data showed U.S. crude inventories grew more than expected last week as a Texas chemical spill hampered exports, ONA reports quoting Reuters.
Brent crude futures settled at $67.83 a barrel, down 14 cents or 0.2 percent. U.S. crude futures settled at $59.41 a barrel, falling 53 cents or 0.9 percent.
U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels, the U.S. Energy Information Administration said. [EIA/S]
Crude exports fell by 506,000 barrels per day, the EIA said.
“The market report was slightly bearish,” said Phil Flynn, an analyst at Price Futures Group in Chicago. “The reason the market is not taking it as even more bearish is because a lot of the build was in the Gulf Coast, and we know the Gulf Coast has had issues with the Houston Ship Channel.”
A petrochemical tank fire and chemical spill last week along the Houston Ship Channel hampered crude shipments for several days, prompting Texas officials on Tuesday to sue the owners of the storage facility.