Higher inventories send crude oil, gasoline prices lower

Crude oil and gasoline futures dropped significantly on Wednesday after the US Energy Information Administration released weekly figures showing that gasoline stockpiles were up by 2.1 million barrels in the week ending April 28.  The numbers were surprising, as analysts had expected gasoline inventories to decline by 700,000 barrels during the week.  Crude oil inventories were also up, by 1.7 million barrels, where a decline had also been expected.

June delivery West Texas Intermediate crude on the New York Mercantile Exchange was down $1.31 to $73.20 per barrel.  Brent crude for June delivery declined by $1.10 to $73.54 per barrel on the International Petroleum Exchange.  Nymex unleaded gasoline, meanwhile, dropped 5.8 cents to $2.1175 per gallon.  It had traded as high as $2.1905 before the weekly inventory figures were released.  The price declines came even though concerns about the Iranian situation were heightened by claims from Iran that it would attack Israel if the US takes what it called “evil” action against Iran’s nuclear development program.