Oil Declines for a Second Day as Stockpiles Rise, Storm Weakens
Oil dropped for a second day in New York as stockpiles unexpectedly rose and Hurricane Isaac weakened, reducing the threat to offshore platforms and rigs in the Gulf of Mexico.
Futures slipped as much as 0.6 percent. Crude inventories increased 3.8 million barrels last week, data from the Energy Department showed. They were forecast to decrease 1.75 million barrels, according to a Bloomberg News survey. Isaac was downgraded to a tropical storm after striking the Louisiana coast as a hurricane. U.S. economic data yesterday dimmed expectations that Federal Reserve Chairman Ben S. Bernanke will immediately announce a third round of monetary stimulus during a speech tomorrow in Jackson Hole, Wyoming.
“Isaac doesn’t seem as if it will inflict any serious damage to oil production in the Gulf, and everybody is waiting for Jackson Hole, which I think will be a non-event,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark.