Crude futures down on strong US inventories

Crude oil stockpiles rose by 5.5 million barrels last week to 324.4 million barrels, according to the U.S. Department of Energy’s weekly report.

The rise in crude oil inventories was fueled by the import of 10.9 million barrels of crude oil per day, the third-highest weekly average in history.

It was also a much larger increase in inventories than had been expected and the tenth time in eleven weeks that crude inventories had risen, and the news sent the price of crude oil futures down substantially.

IPE Brent June deliveries fell $1.48 per barrel to $52.66 late in the day in London, and in early afternoon trading in New York June Nymex WTI was down $2 to $52.20 per barrel.

While gasoline inventories were down by 300,000 barrels and distillate stockpiles fell by 1.4 million barrels, the drop in crude oil prices also sent prices of those oil products down.

May Nymex unleaded gasoline was down 6.91 cents to $1.5560 per gallon, while May Nymex heating oil fell 2.29 cents to $1.4850 per gallon.