Oil fell for a second day after an industry report showed U.S. crude stockpiles rose and as a federal official said Enbridge Energy Partners LP is allowed to restart a shut pipeline by the end of the week.
Futures dropped after the American Petroleum Institute said oil inventories increased by 3.33 million barrels last week to 361.8 million, the highest level for this time of year in a decade. Crews worked to attach a section on Enbridge's Line 6A, which transports 670,000 barrels a day from Canada to U.S. refineries, Bloomberg says.
Market sentiment isn't particularly dented by the API data, however, since the EIA data aren't always in line with API's, Newedge Japan trader Ryoma Furumi said. "If today's EIA report shows a large drop in crude stockpiles as expected, it may trigger a buying spree," he noted.
Nymex reformulated gasoline blendstock for October--the benchmark gasoline contract--fell 75 points to $1.9615 a gallon, while October heating oil traded at $2.1265, 23 points lower. ICE gasoil for October changed hands at $674.25 a metric ton, down $3.00 from Tuesday's settlement, Wall Street Journal informs.