Oil down after inventories report

Crude oil prices were down after a US inventories report that showed crude oil stockpiles down by 200,000 barrels in the week ending April 21, approximately the drop that had been expected. Despite the decline, crude oil inventories are at the highest levels in 8 years. Gasoline inventories were also down, for the eighth week in a row, but only by 1.9 million barrels against an expected decline of 2.6 million barrels.

June delivery Brent crude contracts on the International Petroleum Exchange in London dropped $1 to $72.21 per barrel after the inventories report. West Texas Intermediate crude June contracts were down 93 cents to $71.95 per barrel on the New York Mercantile Exchange. Meanwhile, Nymex unleaded gasoline for May was less than 1 cent lower to $2.1200 per gallon.

With much of the current high gasoline pump prices in the United States being blamed on refining bottlenecks as refiners change over from MTBE blends to ethanol blends for the summer driving season, US President George W. Bush instructed the Environmental Protection Agency to issue waivers to allow states to continue to sell lower grades of gasoline to avoid shortages and resulting higher prices. However, so far only one state - Pennsylvania - has applied for a waiver, so it is uncertain how much of an effect the move will have on prices or supplies.