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Energy Down Sharply After Inventory Data — Energy Roundup

Shares of energy companies fell sharply as signs of slowing consumption sent oil prices down to a six-week low.

Oil futures fell to their lowest since May 10, ending down 1.8% at $104.27 a barrel after a reported increase in inventories underscored concerns about demand destruction. The American Petroleum Institute estimated U.S. crude supplies rose by 5.6 million barrels for the week ended June 17, according to sources.

Similarly, natural gas futures slid 9% to $6.24 per million British thermal units.

The German government moved closer to rationing natural gas after Russia cut deliveries to the country last week in an escalation of the economic war triggered by Moscow's invasion of Ukraine.

Energy commodities spiked in recent months because of the implications of the Russian invasion of Ukraine, but the price increases -- and the fallout for interest rates and the economy -- are now affecting demand and consumption.

Biden administration officials struck a more conciliatory tone with oil-company executives in a meeting to discuss potential responses to record-high gasoline prices.

 Write to Rob Curran at rob.curran@dowjones.com 

(END) Dow Jones Newswires

June 23, 2022 17:22 ET (21:22 GMT)

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