Crude prices rise but remain below $90 level

Crude oil prices were higher on Thursday but remained below the $90 per barrel level after legislators and the president in the United States agreed to a stimulus plan that they hope will help the lagging US economy.

March contracts for West Texas Intermediate crude was $2.42 higher just before the close of floor trade on the New York Mercantile Exchange to $89.41 per barrel.

Meanwhile, Brent crude for March delivery added $2.14 to $88.76 per barrel on the ICE Futures Europe exchange in London.

In its weekly inventories report, the US Energy Information Administration said that crude oil stockpiles grew by 2.3 million barrels in the week ending 18 January to 289.4 million barrels, while gasoline inventories jumped by 5 million barrels but distillates in storage dropped by 1.3 million barrels during the week.

The gain in gasoline inventories was more than three times what had been anticipated.

Nymex February gasoline was 2 cents higher to $2.27 per gallon while March heating oil added 5 cents to $2.46 per gallon.

After the EIA reported separately that natural gas stockpiles were down by 155 billion cubic feet last week, March contracts advanced 19 cents to $7.78 per million British thermal units.