U.S. Oil and Gasoline Inventories Jump

Oil traders may be worried about geopolitics, but they can stop fretting about U.S. crude and gasoline inventories, at least for the near term.

The government on Wednesday reported jumps in domestic oil and gasoline supplies last week that were well above expectations. The news helped to push energy prices down for the day.

The U.S. Energy Information Administration said gasoline inventories surged by 4.3 million barrels last week to 219 million, an increase that was nearly quadruple analysts’ estimates.

Oil inventories rose 1.9 million barrels to 321 million.

“There’s plenty of supply,” said Kyle Cooper, an analyst with Citigroup Inc. in Houston.

Crude inventories are 9% above levels at this time a year earlier. Gasoline supplies are 1.3% above year-earlier levels.

Near-term crude futures in New York slid $1.36, or 2%, to $66.56 a barrel. The price had reached $68.35 on Monday, tying its level on Jan. 20, which had been the highest since Sept. 1.

Gasoline futures fell 7.63 cents, or 4.3%, to $1.729 a gallon.

The energy market has been on edge for weeks over Iran’s standoff with the West over its nuclear ambitions, fearing supply disruptions from the world’s fourth-biggest oil exporter.

In the marketplace, “there’s a tug-of-war between ample physical supplies and the threat to supplies,” said Phil Flynn, vice president of risk management at Alaron Trading Corp. in Chicago. “Prices will be very volatile until the Iran issue is settled.”