Gasoline stockpiles rise in US

Oil prices were volatile on Wednesday, especially in New York, as the US Energy Information Administration released its weekly report on inventories.

Crude oil inventories were down 1.4 million barrels in the week ending July 6 to a total of 252.6 million barrels against a predicted rise of 100,000 barrels.

Gasoline supplies, on the other hand, grew by 1.2 million barrels, more than the 900,000 barrel increase that had been expected, while distillates stockpiles were up by 800,000 barrels as expected.

Brent crude for August delivery dropped 33 cents to $76.07 per barrel late in the day on the Intercontinental Exchange in London, while New York prices seemed to ride a roller coaster on the day.

Prices on the New York Mercantile Exchange were lower before the EIA figures were released, saw gains right after the new figures were announced, and then were back down in early afternoon trade, dropping 6 cents to $72.75 per barrel for August contracts.

At the same time Nymex August gasoline dropped 4 cents to $2.33 per gallon, while August heating oil was 2 cents lower to $2.11 per gallon.

September natural gas was also lower, falling 6 cents to $6.75 per million British thermal units.

Once again, representatives of the Organization of Petroleum Exporting Countries insisted that it did not need to increase production quotas in order to relive shortages and bring down the price of oil.

The secretary-general of OPEC said that refinery problems, including inadequate capacity and breakdowns, political issues, and speculation were the real reasons that oil prices have continued to rise.

OPEC supplies over 40 percent of the oil used globally.