More record highs for crude oil

Crude oil prices reached a new record high in New York on Wednesday, supported by concerns that there won’t be enough supply this summer in the United States and by global demand even though US demand has dropped by around 1 percent per week in each of the past few weeks.

Prices were also pushed upward by declines in US crude oil and gasoline inventories that were much greater than expected.

The US Energy Information Administration reported in its weekly inventories report that crude oil stockpiles, which were expected to increase last week, were instead down by 2.3 million barrels.

In addition, gasoline inventories dropped much more than expected, falling 5.5 million barrels in the week ending 11 April, while distillates stockpiles added 100,000 barrels despite expectations for a decline.

Refineries in the US were reported to have operated at just 81.4 percent of capacity last week due to decreased demand and low margins.

May contracts for West Texas Intermediate crude ended the session on the New York Mercantile Exchange at $1.14 to $114.93 per barrel, a new record close, after rising as high as $115.07 per barrel during the day to a new overall record high, while Brent crude for June delivery added $1.02 to $112.60 per barrel on the ICE Futures Europe exchange in London.

Nymex May gasoline futures were up 5 cents to $2.93 per gallon while June heating oil added 7 cents to $3.23 per gallon and June natural gas gained 4 cents to $10.33 per million British thermal units.