Bloomberg Crude Oil Falls as U.S. Supplies Rise to the Highest Since 1990

April 15 (Bloomberg) -- Crude oil fell after a government report showed that U.S. stockpiles climbed to the highest level in almost 19 years as demand dropped.

Inventories rose 5.67 million barrels to 366.7 million last week, the highest since September 1990, the Energy Department said today. Total daily fuel demand averaged over the past four weeks was 18.7 million barrels, down 5.2 percent from a year earlier, according to the department.

“Demand stinks,” said Chip Hodge, who oversees a $9 billion natural-resource-company bond portfolio as managing director at MFC Global Investment Management in Boston. “Until you see consumption increase and inventories drop, this market will remain range-bound.”

Crude oil for May delivery fell 16 cents, or 0.3 percent, to $49.25 a barrel at 2:52 p.m. on the New York Mercantile Exchange, the lowest settlement since April 7. Futures have traded between $43.62 and $54.66 a barrel over the past month. Prices are up 10 percent so far this year.

The contract was up 32 cents, or 0.7 percent, at $49.73 a barrel at 4:14 p.m. in after-hours electronic trading.

Supplies were forecast to increase by 1.75 million barrels, according to the median of 14 analyst estimates in a Bloomberg News survey. more...