Crude oil fell more than $2 a barrel Tuesday on signs that U.S. gasoline supplies would be adequate to meet summer demand, and after Nigerian oil workers ended a strike.

A government report is expected to show that U.S. gasoline stockpiles rose 1.43 million barrels last week, according to the median of 10 responses in a Bloomberg News survey. U.S. gasoline consumption peaks during the summer driving season, which began this past weekend.

Workers in Nigeria, the biggest African oil producer, ended their strike Saturday.

“The bearish case is emerging despite the fact that gasoline inventories are about 6 percent below where we want them to be,” said Eric Wittenauer, an energy analyst at A.G. Edwards in St. Louis, Missouri. “Production is higher, imports are strong and supplies have risen for three weeks.”

Crude oil for July delivery fell $2.05, or 3.1 percent, to $63.15 a barrel on the New York Mercantile Exchange. Prices are 12 percent lower than a year ago. There was no settlement price Monday, when floor trading on the exchange was shut for the Memorial Day holiday.

Gasoline for June delivery in New York shed 11.71 cents to $2.1934 a gallon.

Regular gasoline at the pump, averaged nationwide, slipped 0.8 cent to $3.201 a gallon Monday, according to AAA, the country’s largest motorist organization. Prices touched a record $3.227 a gallon on May 24; retail gasoline prices are up 12 percent from a year ago.

Gasoline stockpiles increased 3.6 million barrels to 196.7 million barrels in the three weeks ended May 18, according to the Energy Department. Supplies in the week ended May 18 were 7 percent lower than the five-year average for the period, the department said last week.

Gold prices rose after a gain in the value of the euro against the dollar enhanced the appeal of the precious metals as an alternative investment.

“The higher the euro goes, the better for gold,” said Walter Otstott at Dallas Commodity in Texas.

Gold futures for June delivery rose $1.90 to $657.20 an ounce on the Comex division of the New York Mercantile Exchange.

source news : iht.com

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