OPEC not happy with crude oil prices

The US Energy Information Agency reported on Wednesday that crude oil and gasoline stockpiles in the United States were up in the week ending July 14 send crude oil prices lower on eased supply concerns.  Crude oil inventories in the US were up by 0.2 million barrels, against an expected decline of half a million barrels during the week.  Likewise, gasoline stockpiles were up by 1.5 million barrels during the week, when those inventories were expected to drop by 0.7 million barrels.

Brent crude September contracts on the International Petroleum Exchange in London lost $1.22 to $73.14 per barrel, while West Texas Intermediate crude on the New York Mercantile Exchange dropped $1.54 to $72.00 per barrel.  With August contracts expiring at the end of the trading day on Thursday, Nymex September contracts were down $1.26 to $74.00 per barrel.  In reaction to the higher gasoline inventories, Nymex unleaded gasoline dropped 5.7 cents to $2.100 per gallon.

Meanwhile, the president of the Organization of Petroleum Exporting Countries said that his organization was “very uncomfortable” with the present price of oil.  He said that prices would be below $70 per barrel in the absence of the current fighting between Israel and Hizbollah.