Inventory decline concerns markets

Crude oil prices on the New York Mercantile Exchange were up by mid-afternoon but then fell by the close on Wednesday after weekly inventories figures were released that showed a decline of 3 million barrels in stockpiles during the week ending June 3.

Analysts believe that this supports the fear that inventories are not rising fast enough to avoid supply shortfalls in the fourth quarter.

Meanwhile, gasoline inventories were up by 100,000 barrels for the week, less of a rise than expected, and distillate stockpiles were up more than expected at a rise of 1.3 million barrels.

Still fears that heating oil will be in short supply ahead of winter caused heating oil prices to surge ahead of gasoline prices, something that usually does not happen this time of year.

Nymex gasoline for July delivery was up 2.43 cents to $1.5390 per gallon, while heating oil July contracts advanced 0.62 cents to $1.6070 per gallon.

Also in New York, West Texas Intermediate crude oil July contracts rose by 94 cents to $54.70 per barrel before ending down $1.22 at $52.54 per barrel.

December contracts were at just below $58 per barrel. In London, July IPE Brent rose 56 cents to $53.69 per barrel, then ended up down $1.02 to close at $52.11.