Oil Prices Drop Amidst Inflation and Inventory Concerns

Crude oil prices fell further after the Energy Information Administration reported an inventory build of 3 million barrels for the week to May 5, compared with an inventory draw of 1.3 million barrels estimated for the previous week. Gasoline inventories shed 3.2 million barrels in the period, with production averaging 9.8 million barrels daily. A slowdown in both gasoline and diesel demand has fueled concern about future oil demand in the world’s largest economy. The Department of Energy provided some support for prices with an update from Energy Secretary Granholm, who said the department still planned to begin refilling the strategic petroleum reserve later this year.