Oil prices down despite decline in inventories

Crude oil prices fell Wednedsay after the Energy Information Administration said that while US inventories for crude oil, gasoline and distillates fell last week, the declines in distillate stockpiles were less than had been anticipated. Brent crude April contracts dropped $1.40 to $57.38 per barrel, while West Texas Intermediate for March delivery were down $1.09 to $57.99 per barrel by early afternoon on the New York Mercantile Exchange. March Nymex heating oil prices were down as well, falling 5.1 cents to $1.6419 per gallon.

Crude oil inventories were down by 600,000 barrels in the week ending February 9. Distillate stockpiles were down by 3 million barrels, but had been expected to drop by 4.3 million barrels, and gasoline inventories dropped by 2 million barrels. The EIA said that, despite the declines, inventories are still above the upper end of average for this time of year.