Crude oil prices up again as inventories decline

With crude oil and gasoline inventories in the United States down ahead of the July 4 holiday, crude oil prices were back above $72 per gallon on Wednesday.  Crude oil stockpiles were down by 3.4 million barrels in the week ending June 23, much more of a decline than the 0.8 million barrels retreat than had been expected.  Meanwhile, gasoline inventories were down during the week by 1 million barrels, also more than analysts had expected.

At the same time, gasoline demand in the United States was running at 9.5 million barrels per day, a record, even though pump prices remain high.  The American Automobile Association predicted that 1.2 percent more Americans would travel 50 miles or more from home over the Independence Day holiday.  Supply concerns thus remained high with deliveries from three Louisiana refineries still cut off due to an oil spill in a shipping channel.  Some companies have asked to loans from US strategic reserves to hold them over until the channel reopens and deliveries resume.

Brent crude for August delivery was up 76 cents to $71.74 per barrel on the International Petroleum Exchange, while August contract West Texas Intermediate crude added 53 cents to $72.19 per barrel on the New York Petroleum Exchange.  Nymex July unleaded gasoline gained 1 cent to $2.2060 per gallon.