WTI breaches $99 per barrel before declining

The price of crude oil in New York hit a new record at $99.29 per barrel in early trade on Wednesday, but prices dropped after the weekly US inventory report from the Energy Information Administration showed that crude oil and distillates stockpiles fell but gasoline inventories were up a bit.

In the week ending 16 November, crude oil inventories in the US dropped 1.1 million barrels to 313.6 million barrels and distillates in storage, including heating oil and diesel fuel, were 2.4 million barrels lower to 131 million barrels while gasoline stockpiles gained 200,000 barrels to 195.2 million barrels.

While crude inventories fell generally, inventories at Cushing, Oklahoma, where West Texas Intermediate crude is stored, added 1.14 million barrels during the week.

WTI January contracts ended the session 73 cents lower to $97.30 per barrel on the New York Mercantile Exchange, while Brent crude for January delivery fell 60 cents to $94.89 per barrel after hitting a new record of $96.53 earlier in the session.

Nymex December gasoline dropped 1 cent to $2.44 per gallon while January heating oil traded even at $2.71 per gallon and January natural gas gained 13 cents to $7.95 per million British thermal units.

Floor trade will be closed in New York on Thursday in recognition of the Thanksgiving Day holiday in the US.