LONDON, Oct 19 (Reuters) - Oil prices dropped on Wednesday after U.S. government data showed crude and gasoline piling up in storage tanks and consumers cutting down on fuel use.

U.S. crude settled down 79 cents to $62.41 a barrel, after losses of $1.16 on Tuesday. London Brent crude fell 68 cents at $58.60.

Prices slumped after weekly U.S. government data showed crude stocks rising by 5.6 million barrels, sharply up on a forecast build of 2 million barrels.

The build brings U.S. crude supplies nearly 12 percent above last year after hurricanes Rita and Katrina toppled refineries on the Gulf Coast and slashed demand for the feedstock.

Gasoline supplies, meanwhile, rose by nearly 3 million barrels against expectations of a 1.2 million barrel draw, though distillates, which include heating oil, declined by 1.9 million barrels -- nearly matching expectations.

Adding to the bearish impact of the stocks data, the U.S. goverment's Energy Information Administration also provided the latest evidence that high prices have eroded demand.

It said demand for oil products in the world's biggest energy consumer fell 3.2 percent from a year ago.

http://today.reuters.com/business/newsarticle.aspx?type=tnBusinessNews&storyID=nSP29331

Gasoline closed at $1.67 on Wednesday, the lowest since July. Also below $1.7387 which a certain SandSanta should recognize.

10/20/2005 4:38:30 PM

gasoline may be down, but heating oil will surge

10/20/2005 4:42:50 PM

Too early to tell. If the bears are right then the dropping price of crude will have no choice but to bring down the price of heating oil with them.
http://www.wtrg.com/daily/small/hofclose.gif

10/20/2005 4:45:06 PM

HOLY SHIT!!!! ALERT THE MEDIA!!!

SUPPLY-DEMAND CURVES WORK!!!!

10/20/2005 4:56:54 PM

heh
i can't even count how many SUVs i've seen for sale lately

10/20/2005 5:05:31 PM

he acts like hes on a mission to make sure we keep using oil for the next century

10/20/2005 5:08:21 PM

We all must have goals.

10/20/2005 5:11:01 PM

i wonder if this will destroy our trend of taking damneded SUV's of the road...

10/20/2005 11:30:41 PM

I hope not. I've always thought they were pretty ridiculous.

10/20/2005 11:33:30 PM

So how long will it take for the reduced prices to find their way to the pump? Cause I haven't seen it yet.

I guess NC will always be $0.15-0.20 higher than the national average now. We are the new California.

[Edited on October 21, 2005 at 8:58 AM. Reason : -]

10/21/2005 8:58:07 AM

shit the cheapest i've seen 'round here (charlotte) is still $2.79

10/21/2005 9:04:14 AM

i paid 2.69 yesterday

10/21/2005 9:32:51 AM

It seems to be the independent stores are getting it first. A station in Clayton has $2.69.

You must remember that these are "futures" and therefore are not yet present contracts. As such, although the price for a gallon of gasoline is at $1.67 (before taxes) under the current futures contract, it doesn't mean that the on-demand wholesale price is that low yet, just that once these contracts come due it should be. I'm not sure when these contract come due, but I'm think it is early next month.

So if you can hold off purchasing gasoline until then, I'd do it

BTW, the price is down another 6 cents to $1.61 as sellers continue to outnumber buyers. Crude is also trading at 3-month lows.

[Edited on October 21, 2005 at 12:17 PM. Reason : update]

10/21/2005 12:15:04 PM

good.

10/21/2005 12:31:17 PM

I wouldn't consider them to be "piling up" based on a 5.6 million barrel increase. We consume about 20 million barrels of oil daily. It is good news that the price is falling, if only for inflation reasons. Unfortunatly, I'm sure many people will forget this price spike and go back to their usual ways.

10/21/2005 12:40:36 PM

$2.59 in Fuquay and droppin. W00t!

10/21/2005 1:06:00 PM