Crude oil prices up on IEA report on supplies

Crude oil prices were higher on a report from the International Energy Agency that said more crude oil supplies will be needed from member nations of the Organization of Petroleum Exporting Countries in the months to come. OPEC is scheduled to meet beginning Thursday in Vienna and while the cartel is not expected to introduce any further productions cuts at the meeting, a statement from OPEC’s president that he expects consumption to decrease by 1.7 million barrels per day in the second quarter compared to the current quarter could be seen as an indication that output will not increase, either. The IEA said, however, that the impact of that usual decline in usage is not as significant as previously due to earlier warm temperatures that lead to earlier use of energy-consuming air conditioning.

The price for Brent crude April contracts added 86 cents to $51.60 per barrel during the day, while West Texas Intermediate crude for April delivery was 48 cents higher to $69.39 per barrel on the New York Mercantile Exchange. Nymex gasoline was 0.346 cents higher to $1.945 per gallon at midday, while Nymex heating oil was 3.99 cents higher to $1.7222 per gallon. Natural gas prices also advanced, gaining 11. Cents to $7.026 per 1,000 cubic feet.