Crude oil prices drop slightly

Crude oil prices were down on Tuesday ahead of Wednesday’s weekly report on US inventories.  Analysts believe that crude oil stockpiles will increase by 900,000 barrels, while gasoline inventories are expected to be up by 1.8 million barrels.

Brent crude for May delivery dropped 89 cents to $65.95 per barrel on the International Petroleum Exchange.  Meanwhile, May contracts for West Texas Intermediate crude lost 94 cents to $65.80 per barrel on the New York Mercantile Exchange.

Nymex gasoline futures for May gained 18 cents to $1.8650 per gallon after a warning from Merrill Lynch that gasoline prices in the US could reach $2.40 per gallon, or $100 per barrel, by summer due to higher demand in the face of low domestic output and dropping inventories and imports.