Crude markets grow volatile with inventory buildup

Oil prices rose in volatile trading Thursday after the government reported an enormous buildup of oil and gasoline at U.S. storage facilities, another manifestation of how badly the deteriorating economy has cut into energy demand.

With the latest report from the Department of Energy, crude inventory levels have risen by 14 million barrels since the week ended Jan. 2, pushing operational capacity at key storage sites to the limit.

Prices tumbled 7 percent before a late day rally, with light, sweet crude for March delivery settling up 12 cents at $43.67 on the New York Mercantile Exchange. (AP)

posted on Friday, January 23, 2009 8:30 PM by isnaini

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