Brent, WTI trade just above $61 per barrel

Oil prices dropped again on Wednesday after the weekly US stockpiles report showed that distillates inventories, which include heating oil, were up 4.1 million barrels in the week ending September 15.  Total inventories of distillates stood at 148.7 million barrels, their highest level since January 1999, a time when crude oil futures were trading at $12.50 per barrel.  The high levels have analysts convinced that there will be enough supply this winter to take care of any conceivable cold spell or supply disruption.  While crude oil stockpiles were down by 2.8 million barrels last week, total inventories were still around the top of their average level for the past five years.

Brent crude November contracts were 67 cents lower at late afternoon in London, trading at $61.50 per barrel after having tone as low as $60.76 earlier in the day.  The decline comes on top of Tuesday’s $1.88 drop, and extends the decline since last month’s record high price was reached to a total of 22 percent.  October delivery West Texas Intermediate, which dropped $2.04 on Tuesday, declined another 41 cents to $61.25 per barrel on the New York Mercantile Exchange.  With October contracts expiring at the end of trade today, November WTI was down 62 cents to $61.55 per barrel.  Meanwhile, Nymex October heating oil futures were 1.75 cents lower to $1.6741 per gallon, approaching a seven-month low.