Tags: Oil | Prices

Oil Dips, Gasoline Prices Rise as Supplies Fall

Thursday, 03 Jun 2010 12:59 PM

Oil prices wavered and wholesale gasoline prices climbed Thursday after a government report showed that inventories of crude fell more than forecast last week and supplies of gasoline dropped unexpectedly.

Natural gas prices also rose after a separate report indicated supplies increased less than expected last week.

Motorists meanwhile are seeing lower pump prices as retail gasoline prices continue to slide.

Benchmark crude for July delivery gave up early gains and fell 31 cents to $72.55 a barrel on the New York Mercantile Exchange at midday. Earlier in the session, it was as high as $74.40. Oil gained 28 cents to settle at $72.86 on Wednesday.

The Energy Information Administration reported that stocks of crude oil shrank by 1.9 million barrels last week and gasoline inventories fell by 2.6 million barrels. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., called for a smaller draw in oil stocks and expected supplies of gasoline to increase.

The report also showed that demand for crude products over the last four-week period is 8.1 percent higher than a year ago, including a 17.1 percent increase in distillates such as diesel fuel and heating oil.

"Demand is starting to pick up again," PFGBest analyst Phil Flynn said. "Things are looking good."

Oil prices are down about 16 percent from $87 a month ago. The slide started with investor worries about European debt problems dragging down global demand for commodities.

Retail gasoline prices dropped again Thursday, falling 0.7 cent to a national average of $2.716 per gallon, according to AAA, Wright Express and Oil Price Information Service. Prices have fallen 4.3 cents from a week ago and 18.8 cents over the past month as crude prices declined. Pump prices are 16.8 cents higher than a year ago.

In other Nymex trading in July contracts, heating oil rose 0.51 cent to $2.0110 a gallon. Gasoline added 1.99 cents at $2.0460 per gallon. Natural gas was up 13.5 cents cent at $4.559 per 1,000 cubic feet.

In London, the Brent crude July contact rose 46 cents to $74.21 on the ICE futures exchange.

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Oil prices wavered and wholesale gasoline prices climbed Thursday after a government report showed that inventories of crude fell more than forecast last week and supplies of gasoline dropped unexpectedly.Natural gas prices also rose after a separate report indicated...
Oil,Prices
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2010-59-03
Thursday, 03 Jun 2010 12:59 PM
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