US crude oil inventories up substantially

New information released on Wednesday by the US Energy Information Administration showed that crude oil inventories in the United States were up more than had been expected in the week ending March 24, while gasoline inventories were down much more than had been forecast.  The news meant mixed prices in crude oil and higher prices for gasoline futures.

Crude oil stockpiles were up by 2.1 million barrels during the week, against an expected rise of less than 1 million barrels.  The rise brought US inventories up to 340.7 million barrels, higher than they have been in seven years.  A rise in oil imports of 769,000 barrels per day, to 10.1 million barrels per day, topped the 85,000 barrels per day increase in refining during the week, helped inventories to go up.

The relatively slow refinery activity also contributed to the 5.4 million barrel decrease in gasoline inventories, the largest drop in one week since August 2003.  A decrease of only 1.3 million barrels was expected.  At the end of the week, the gasoline inventory stood at 216.2 million barrels.

May contract West Texas Intermediate crude lost 22 cents to $65.85 per barrel by late morning on the New York Mercantile Exhange.  However, Brent crude for May delivery had gained 12 cents to $65.01 per barrel on the International Petroleum Exchange in London.