Strong Dollar and High Inventory Weigh on Crude Oil

US crude oil fell below $90 per barrel, re-approaching a six-week low after a US government report showed oil supplies rose significantly more-than-expected last week. The weekly EIA crude oil inventory report showed that inventories rose by 3.8mn barrels to 381.4mn barrels, total motor gasoline inventories decreased by 0.6mn barrels and distillate fuel fell by a steep 3.83mn barrels. Crude recovered to close slightly above the 90.00 price and is trading this morning at 90.32. The Energy Information Administration said crude oil stocks climbed 3.8 million barrels in the week ended March 1, compared with forecasts for a rise of 500,000 barrels. The sharp increase came as refiners unexpectedly cut crude-processing rates in the week by 480,000 barrels a day to their lowest level in nearly two yearsContinue Reading.....