Oil Falls Below $125 as U.S. Fuel Supplies Gain, Demand Drops

Oil Falls Below $125 as U.S. Fuel Supplies Gain, Demand Drops From Bloomberg: Crude oil futures fell below $125 a barrel for the first time in seven weeks after a U.S. government report showed that fuel stockpiles increased as consumption tumbled to the lowest in more than a year. Gasoline supplies rose 2.85 million barrels last week, the Energy Department reported. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 2.42 million barrels. U.S. fuel demand averaged 19.9 million barrels a day, the lowest since January 2007. ``The inventory and demand numbers make it clear that demand is being affected by high prices and the weak economy,'' said Kyle Cooper, an analyst at IAF Advisors in Houston. ``The 19.9 million barrel demand number is incredibly low and has to have the bulls worried.''... [read full story]