Oil still rising: markets and inventories

News that ExxonMobil and Valero refineries in the U.S. had been closed recently for unplanned maintenance and that Conoco Philips will close it’s Humber refinery next month caused worries in advance of the U.S. summer driving season, sending crude oil prices up on Tuesday.

Another factor in the rising prices was anticipation of an expected report on Wednesday that will show yet another rise in inventories of crude oil, gasoline, and distillates.

In addition, Sheikh Ahmad al-Fahad, president of OPEC announced that OPEC will increase supplies by about 500,000 barrels per day in May, which will raise output to its highest levels in nearly 25 years.

Nymex WTI May contracts rose $1.23 to $51.60 per barrel; June deliveries went up $1.58 ,t o $53.06.

June delivery Brent crude was up $1.52, to $52.30.

Wednesday’s report on U.S. oil supplies is expected to say that another 1.8 million barrels of crude oil are in inventory, that gasoline inventories are up by 200,000 barrels, and that the stockpile of distillates such as heating oil and diesel fuel are up by 400,000 barrels.