Crude prices down on improved refinery capacity

Crude oil prices were down on Tuesday, and the price of gasoline rose as refinery capacity, or the lack of it, continued to cause concerns. Heating oil futures were down slightly on the day.

The amount of US refining capacity shut down by Hurricanes Katrina and Rita remains at around 25 percent, according to the US government.

Seven of the fifteen refineries shut down before Rita hit the Gulf Coast have announced plans to get back online, while five plants were left with what was characterized as significant damage. Two of those are expected to remain closed for several weeks. In addition, all oil production in the Gulf of Mexico is still shut down.

Brent crude on the International Petroleum Exchange in London fell 96 cents on the day to $62.97 per barrel, while West Texas Intermediate crude on the New York Mercantile Exchange dropped 75 cents to $65.07 per barrel.

The refiners’ margin on a barrel of gasoline went above $20 as October Nymex unleaded gasoline futures gained 5.83 cents to $2.1875 per gallon on the day.

Heating oil futures fell, however, by just about 1 cent to $2.0500 per gallon, as traders remained more concerned about gasoline supply because it makes up more than half of the US demand for petroleum products.