Higher-than-expected inventory levels and sagging demand had investors shying away from oil today. The benchmark crude for August delivery was down 38 cents to $76.77 a barrel at midday London time in electronic trading on the New York Mercantile Exchange. On Tuesday the contract gained $2.20 to settle at $77.15.
The American Petroleum Institute said crude inventories rose 1.7 million barrels last week, compared to an expected drop of 2.6 million barrels. The institute also said that gasoline inventories also rose during the week.
