Crude prices lower on gains in US inventories

Crude oil prices fell Wednesday as the US Energy Information Administration reported that inventories of crude, gasoline, and distillates all advanced last week while demand declined and refinery capacity dropped by 0.7 percent to 84.3 percent.

Stockpiles of crude oil added almost three times the expected amount, growing by 7 million barrels to 300 million barrels, although inventories remained 24.5 million barrels below levels at this time last year.

Gasoline inventories added 3.6 million barrels, twice the amount that had been anticipated, to 227.5 million barrels, while distillates were up by 100,000 barrels to 127.1 million barrels.

March contracts for West Texas Intermediate crude dropped $1.27 to $87.14 per barrel on the New York Mercantile Exchange while Brent crude for March delivery fell $1.04 to $87.78 per barrel on the ICE Futures Europe exchange in London.

Prices might have fallen farther, according to analysts, if equities markets had not turned higher.

Nymex March gasoline and heating oil each dropped 3 cents, to $2.24 per gallon and $2.42 per gallon respectively, while March natural gas added 5 cents to $8 per million British thermal units.

Despite recent declines, at-the-pump prices for gasoline in the US remained an average of nearly 80 cents per gallon higher than they were at the same time last year.