US gasoline inventories lower last week

Crude oil prices were lower in the US on Wednesday after an announcement by Iranian Preisdent Mahmoud Ahmadinejad that the 15 British sailors his country has held on charges that they had entered Iranian waters will be released. Also helping send prices lower was the weekly US inventories report from the US Energy Information Administration, which said that crude oil stockpiles grew more than had been expected last week, while gasoline inventories fell more than it was anticipated they would.

Crude oil inventories added 4.3 million barrels to 332.7 million barrels during the week ending March 30. On the other hand, gasoline stockpiles were down by 5 million barrels over the week, to 205.2 million barrels, sending inventories to the lower half of average for this time of year. In consequence, gasoline futures were 4.39 cents higher to $2.0616 per gallon, up 30 percent so far this year. Distillates inventories held steady at 118 million barrels, but heating oil futures still added 1.16 cents during the day to $1.8503 per gallon. Natural gas prices were also higher, gaining 6.5 cents to $7.491 per 1,000 cubic feet.

May contracts for West Texas Intermediate crude were 60 cents lower to $64.04 at midday on the New York Mercantile Exchange, continuing a decline that saw the price drop $1.30 by the close on Tuesday. However, in late trade on the Intercontinental Exchange in London, Brent crude for May delivery had added 10 cents to $67.91 per barrel.