WTI up $5 per barrel on session

Crude oil hit a new record high Wednesday as the Organization of Petroleum Exporting Countries held production quotas steady with no indication that they will be willing to increase production anytime soon in an effort to push prices lower.

In addition, tensions remained high in South America as Venezuela continued to place troops to its border with Colombia, raising concerns that the dispute over Colombia’s attacks on rebel bases in Ecuador could go beyond the level of saber-rattling.

Also tending to send prices higher were surprise declines in US crude oil inventories.

In its weekly inventories report, the US Energy Information Administration said that crude oil inventories in the US were down 3.1 million barrels to 305.4 million barrels in the week ending 29 February when they were expected to go up by 2.4 million barrels.

Distillates stockpiles were also lower, by 2.4 million barrels, but gasoline inventories added 1.7 million barrels to 234.3 million barrels, 17.9 million barrels above inventories at the same time last year.

West Texas Intermediate crude for April delivery hit a new record at $104.52 per barrel, up $5.00 at the close of floor trade on the New York Mercantile Exchange, while April contracts for Brent crude added $3.76 to $101.28 per barrel on the ICE Futures Europe exchange in London.

Nymex April gasoline was up 12 cents to $2.65 per gallon while April heating oil was 15 cents to $2.94 per gallon and April heating oil gained 40 cents to $9.75 per million British thermal units.