Gasoline inventories down before hurricane assessment in

Gasoline inventories fell by 500,000 barrels last week to 194.4 million barrels, according to Wednesday’s US Department of Energy weekly stockpiles report, the ninth week in a row that the US gasoline supply declined.

The data does not take into consideration the impact of Hurricane Katrina on supplies, as the report covers the week ending August 26, before the storm hit the US Gulf Coast. Gasoline futures for September on the New York Mercantile Exchange gained 17.2 percent to $2.90 per gallon, a record high.

While the US government tried to ease supply fears by announcing that it will release strategic reserves, it is questionable how much this move will help considering the number of refineries closed by the storm.

Nine refineries in the storm zone are currently shut down with no estimate of when they will open again, and four other refineries are operating at a reduced output.

Heating oil and natural gas prices were also up on the day. Nymex heating oil contracts for September were up to $2.0749, a new record high, while October Henry hub natural gas prices advanced by 3.6 percent to $12.08 per million British thermal units.

Crude oil inventories also were down last week, by 1.5 million barrels to 321.4 million barrels. October contract West Texas Intermediate crude on Nymex actually lost 87 cents on the day to $68.94 per barrel, while Brent crude on the International Petroleum Exchange fell by 55 cents to $67.02.