Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Oil prices post first quarterly decline since 2008

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Oil prices continued to slide Wednesday, and posted the first quarterly decline since the fourth quarter of 2008, after a weaker-than-expected report on crude inventories.

What prices are doing: Crude oil futures for August delivery fell 31 cents, or 0.4%, to settle at $75.63 a barrel.

oil.png

Over the course of the quarter, oil prices lost 9.7%. Prices have gained every quarter since the last quarter of 2008, when they plunged by 55.7%.

The national average price for a gallon of regular unleaded gas held steady at $2.755, unchanged from the previous day's price, according to motorist group AAA.

What's moving the market: Investors were disappointed by weekly supply report that showed weak demand for crude oil. The Energy Information Administration said that gasoline stockpiles jumped by 500,000 barrels, surprising analysts who expected them to drop by 400,000 barrels, according to a consensus estimate collected by energy information provider Platts.

Distillates, used to make heating oil and diesel, increased by 2.5 million barrels, above the 1.3 million-barrel increase analysts had forecast.

Crude inventories fell by 2 million barrels last week. Analysts expected crude supplies to fall by 1.2 million barrels.

Oil prices were also pressured by a report from Automatic Data Processing showed that employers added 13,000 jobs in June, but the gain was below forecasts.

Economists surveyed by Briefing.com expected payrolls to climb by 61,000 during the month.

What analysts are saying: "The main focus for the energy market will switch to the weekly EIA oil inventories report," said Myrto Sokou, analyst at Sucden Financial, in a research note.

"Crude oil prices have retreated almost 10% from the end of March, displaying fears for the pace of the economic recovery," Sokou said. "However, the U.S. hurricane season could provide some support to the energy market and hold crude oil prices in the $70-$80 per barrel range in the near term."  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.43%3.43%
15 yr fixed2.70%2.69%
5/1 ARM2.92%2.97%
30 yr refi3.45%3.44%
15 yr refi2.74%2.69%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,476.62 -16.44 -0.09%
Nasdaq 5,115.34 17.71 0.35%
S&P 500 2,170.36 1.88 0.09%
Treasuries 1.58 0.01 0.70%
Data as of 10:36am ET
Company Price Change % Change
Freeport-McMoRan Inc... 11.96 -0.42 -3.35%
Gilead Sciences Inc 81.55 -7.00 -7.91%
Chesapeake Energy Co... 5.27 0.13 2.53%
Bank of America Corp... 14.43 0.06 0.42%
Micron Technology In... 14.29 0.37 2.66%
Data as of 10:21am ET

Sections

HSBC banker arrested at JFK airport as he prepared to leave the country. He and former trader face federal charges they manipulated currency trades. More

The Democratic Party's platform for its convention is clear when it comes to the Federal Reserve: it needs more diversity and less Wall Street More

Scientists at MIT are working on movie screen technology that would project high-res 3D imagery without relying on glasses. More