Crude prices fall on US inventories report

Crude oil prices fell at the close of trade on Wednesday after the US Energy Information Administration reported that while crude oil stockpiles were lower last week, gasoline and distillates inventories were higher and refinery usage was up.

The EIA reported that US crude oil inventories dropped 6.8 million barrels in the week ending 4 January, to 282.8 million barrels in storage, while gasoline inventories grew by 5.3 million barrels and distillates stockpiles gained 1.5 million barrels.

US refineries worked at 91.3 percent of capacity during the week, the best since last August.

February contracts for West Texas Intermediate crude fell 69 cents to $95.64 per barrel on the New York Mercantile Exchange while Brent crude for February delivery was down $1.30 to $94.24 per barrel on the ICE Futures Europe exchange in London.

Nymex February gasoline was 4 cents lower to $2.44 per gallon while February heating oil dropped a cent to $2.63 per gallon but March natural gas was 5 cents higher to $8.03 per million British thermal units.