Crude prices fall then rise after inventories data

Crude oil prices fell on Wednesday after new inventories figures were released by the US Energy Information Administration. The declines came after substantial price increases on Tuesday after Organization of Petroleum Exporting Countries member nation Saudi Arabia said it would cut production further from February 1 and weather forecasters in the US warned of more cold weather to come. Prices then rose again later in the session.

The new data shows that crude oil stockpiles in the United States were 2.7 million barrels higher in the week ending January 26, rising to a total of 324.9 million barrels in storage. Gasoline inventories were also higher, by 3.8 million barrels to 224.6 million barrels. Distillate stockpiles fell 2.6 million barrels to 140 million barrels as a drop in heating oil inventories was larger than an increase in diesel fuel in storage.

Brent crude March contracts dropped $1.15 to $55.25 per barrel in London right after the new figures were announced, while West Texas Intermediate crude for March delivery was $1.05 lower on the New York Mercantile Exchange to trade at $55.92 during the morning session. By late afternoon in London and early afternoon in New York, however, Brent was up again by 33 cents over Tuesday’s close to $56.72 per barrel and WTI had added 48 cents to $57.45 per barrel. Nymex gasoline dropped after the EIA data by over 3 cents to $1.4875 per gallon, while Nymex heating oil dropped around 2 cents to $1.6190 per gallon.