Another decline for crude prices

Crude oil prices fell again on Wednesday after the US Energy Information Administration reported that crude oil and distillates inventories were up much more than had been expected in the week ending 25 April and on yet another interest rate cut from the Federal Reserve in the United States.

Inventories of crude oil were up 3.8 million barrels, more than twice the expected increase, while distillates were up 1.1 million barrels to 105.8 million barrels.

Gasoline stockpiles were down by 1.5 million barrels during the week, about twice the expected decline, but inventories remained 18 million barrels higher than last year at this time and 2.6 percent above average for this time of year.

West Texas Intermediate crude for June delivery was down $2.08 to $113.55 per barrel shortly after the Federal Reserve cut interest rates by a quarter of a percentage point to 2 percent and not long before the close of floor trade on the New York Mercantile Exchange.

Brent crude was 98 cents lower to $112.45 per barrel on the ICE Futures Europe exchange in London.

Nymex May gasoline dropped just under a cent to $2.93 per gallon while May heating oil was down 5 cents to $3.19 per gallon.

At-the-pump gasoline and diesel prices in the United States hit new highs again as regular unleaded gasoline jumped a cent overnight to $3.617 per gallon and diesel was up 0.6 cent to $4.25 per gallon.