Crude Oil Plunges Amid Easing Iran-Israel Concerns, Jump In Inventories

(RTTNews) - Crude oil prices showed a substantial move to the downside during trading on Wednesday, adding to the modest losses posted in the two previous sessions.

Crude for May delivery plunged $2.67 or 3.1 percent to $82.69 a barrel, recording the largest one-day dollar and percentage decline since early January.

The sell-off by the price of crude oil partly reflected optimism Israel will show restraint in its response to Iran's recent missile attack, avoiding the Islamic republic's oil infrastructure.

A report from the Energy Information Administration showing an extended surge in U.S. crude oil inventories also weigh on the price.

The report said crude oil inventories jumped by 2.7 million barrels last week after spiking by 5.8 million barrels in the previous week. Economists had expected crude oil inventories to rise by 1.6 million barrels.

At 460.0 million barrels, U.S. crude oil inventories are now only approximately 1 percent below the five-year average for this time of year, the EIA said.

Meanwhile, the EIA said gasoline inventories fell by 1.2 million barrels last week are about 4 percent below the five-year average for this time of year.

Distillate fuel inventories, which include heating oil and diesel, also decreased by 2.8 million barrels last week and are about 7 percent below the five-year average for this time of year.