Crude oil prices down over $1 per barrel

Crude oil prices were lower on Wednesday after US inventories figures from the Energy Information Agency and even though US Energy Secretary Sam Bodman said he fears that gasoline prices would reach new record highs this summer. Crude oil stockpiles grew by 1.1 million barrels in the week ending April 27, while gasoline inventories were 1 million barrels lower last week. Both results were expected by analysts. Refinery utilization was up by only a half percent to 88.3 percent last week, and some analysts wondered why operators have not taken advantage of the current price incentive to produce more gasoline.

Brent crude for June delivery fell $1.10 to $65.90 per barrel on the Intercontinental Exchange in London after the new inventories data was released, while June contracts for West Texas Intermediate crude dropped $1.12 to $63.28 per barrel on the New York Mercantile Exchange. Nymex RBOB June gasoline was also down, falling a bit less than 3 cents to $2.2160 per gallon.

The Organization of Petroleum Exporting Countries insisted that the crude market is “well-balanced” and that no production increases well be needed for the rest of the year, but the head of the International Energy Agency said that supply was not adequate and that oil prices are currently too high.