Black gold fell sharply in morning trading as a government report showed a larger-than-expected buildup in crude supplies. Additionally, oil demand fell by 3% and gasoline supplies surged by more than 5 million barrels even though refineries took in 316,000 fewer barrels of crude each day. The United States Oil Fund (NYSEArca: USO) was down 2.9% in morning trading.
All three major U.S. indexes are in the red, with the Dow Jones Industrial Average dropping 0.4%, the S&P 500 giving up 0.8% and the Nasdaq declining by 1.1%.
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Kevin Grewal contributed to this article.