Last update: 3:50 p.m. EST Jan. 7, 2009
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NEW YORK (MarketWatch) -- Crude-oil futures tumbled 12% Wednesday, marking their biggest one-day percentage drop in more than seven years, after government reports showed U.S. crude inventories jumped last week and as data indicated deteriorating troubles in the economy.
The nation's stockpiles of crude reached 325.4 million barrels in the week ended Jan. 2, up 6.7 million barrels from a week ago, the Energy Information Administration reported. Analysts surveyed by energy information provider Platts had expected a buildup of 1.5 million barrels.
"The stock build should be enough to chase the bulls back into the barn," said James Williams, an economist at energy research firm WTRG Economics. "The substantial builds in crude oil, gasoline and distillates ought to bring the bears back from a short hibernation."
Crude for February delivery tumbled $5.95, or 12.2%, to end at $42.63 a barrel on the New York Mercantile Exchange, its biggest daily percentage loss since Sept. 24, 2001.
Wednesday's loss came after oil topped $50 a barrel on Tuesday, a level not seen in five weeks.
Also Wednesday, the EIA said gasoline inventories increased 3.3 million barrels in the latest week, while distillate stocks rose by 1.8 million barrels.
Total petroleum products supplied over the past four-week period averaged 20.1 million barrels a day, down by 2.9% compared with the same period last year, the EIA reported. U.S. refineries operated at 84.6% of capacity last week, higher than the prior week's 82.5%.
Crude inventories at Cushing, Okla., the delivery point for crude futures contracts traded on the Nymex, jumped 15% to reach 32.2 million barrels, the highest level since at least April 2004, when the government started collecting Cushing data.
On the Nymex, February heating oil futures fell 5.1% to $1.5431 a gallon, and February reformulated gasoline skidded 9.5% to $1.0764 a gallon.
God we're stupid.
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