Inventories drop as France faces Total shutdown

Crude oil prices were up on the day on a drop in inventories in the week ending September 23. Even though gasoline inventories were up on the week, gasoline prices were up on worries about gasoline supply as refinery inputs in the US fell by 4.6 percent to 14.6 million barrels per day.

Refineries were working at 86.7 percent of capacity and another drop in this figures is expected at the next report. Concerns about supply were not helped by a stroke at France’s largest refinery, owned by Total, and threats to extend the strike to all of Total’s refineries. If the strike spreads, over half of France’s refining output would be shut down.

After being down early in the day, crude oil prices were up after the inventories information from the US Energy Information Administration were released. November contracts for West Texas Intermediate crude on the New York Mercantile Exchange were up $1.28 to $66.35 per barrel.

Brent crude for November delivery on the International Petroleum Exchange gained 96 cents to $63.93 per barrel. Nymex October unleaded gasoline gained 3.6 cents to $2.250 per gallon, while heating oil prices for October futures on Nymex gained 3.8 cents to $2.1475 per gallon.

The heating oil price was up on inventories of heating oil that were down even though diesel fuel inventories were up last week.