Crude drops on gains in gasoline, distillates inventories

Crude oil prices were lower on Friday after Thursday’s significant rise as analysts decided that the gains in gasoline and distillates inventories in the US that the Energy Information Administration reported on Wednesday showed that supplies are not tightening as had been anticipated.

The increases in the week ending 30 November left distillates 0.6 percent above average, while even a much larger than expected decline in crude oil stockpiles last week left inventories 0.7 percent above average for this time of year.

West Texas Intermediate for January delivery was down $2.08 at the close of trade on the New York Mercantile Exchange to $88.15 per barrel, while Brent crude January contracts dropped $1.70 to $88.48 per barrel on the ICE Futures Europe exchange in London.

Nymex January gasoline fell 3 cents on the session to $2.27 per gallon while January heating oil were down 4 cents to $2.50 per gallon and January natural gas was 18 cents lower to $7.15 per million British thermal units.