Crude oil loses ground on EIA disappointment

25 February 2010

Written by Bob Burton

Crude oil prices moved lower on the New York Mercantile Exchange this morning (February 25th), weighed down by disappointing demand data from the Energy Information Administration.

The government group's weekly inventory report showed 3.03 million-barrel build in crude oil stocks across the US, while heating oil inventories also climbed last week.

Although analysts and traders were bracing for a further weakening in demand, the extent of the stock build outstripped generally bearish expectations. A Bloomberg revealed a median consensus that inventories would climb by 1.9 million barrels.

The report, published late yesterday, took the momentum out of mid-week price rises, and oil continued to dip this morning, trading below the $80 (£52) a barrel mark.

Price declines, which were also witnessed in heating oil futures, were exacerbated by deepening tension in Europe as ratings agencies revealed an imminent downgrading of Greece's sovereign debt rating as the country struggles to manage its finances.

Click here for a home heating oil quote