Crude oil prices slightly lower in early trade

Crude oil prices were down early in the day on Wednesday ahead of new US inventories numbers that are expected to show crude oil stockpiles up again but gasoline and distillates supplies lower than last week.  Prices had risen sharply on Tuesday over supply concerns after news that a gasoline refining unit at the Hovensa refinery, a joint venture of Amerada Hess and Petroleos de Venezuela, had been unexpectedly shut down for maintenance over the weekend and that it would likely remain closed for two weeks.

In early morning trade on the International Petroleum Exchange in London, April contract Brent crude lost 42 cents to $63.55 per barrel, while May delivery Brent dropped 44 cents to $63.82.  The April contract expires at Thursday’s close of trade.  In electronic trade on the New York Mercantile Exchange, West Texas Intermediate crude April contracts had dipped 43 cents to $62.67 per barrel.

Meanwhile, natural gas prices in the UK were down sharply over record high prices set earlier in the week.  Gas for same-day delivery was at 105p per therm, well below the 150p per therm same-day price late in the day Tuesday.  Prices are still up for the week, however, over the 60p per therm price seen at the close on Friday.  The drop in price was said to reflect a decline in demand and the return to production of Statoil’s Troll A platform in the North Sea.