Oil price falls to 7-week low

source: Mmegi

Crude fell for a fifth day and gasoline component RBOB tumbled to a six and a half month low, as the dollar strengthened and the end of US summer holidays approached without triggering a seasonal stockpile drop.

US crude for October delivery fell as much as 56 cents to $72,54 a barrel, the lowest price since July 7. It was down 33 cents at $72,77 by yesterday. ICE Brent for October fell 35 cents to $73,27.

“The basic issue is just record-high inventory levels at the end of the gasoline season, when demand is going to be dropping,” said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp. “US gasoline inventories have gone sideways during the peak driving season, when we should get a draw. We are pretty close to $72, which is support, but if we break through that we’ll go to the 60s.”

Prices of gasoline component RBOB for September delivery slumped to a [continue reading]

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