Crude oil in new record despite gains in stockpiles

Crude oil prices reached another new record high in New York in afternoon trade on Wednesday, touching $123.80 per barrel as investors ignored the fact that crude oil and gasoline inventories rose more than expected last week and instead focused on a small but unexpected decline in distillates stockpiles, which include heating oil and diesel fuel.

According to the US Energy Information Administration’s weekly inventories report, crude oil stockpiles added 5.7 million barrels to 325.6 million barrels in the week ending 2 May, much more of a gain than expected, while gasoline inventories added 800,000 barrels to 211.9 million barrels against an expected decline.

Distillates in storage, however, dropped 100,000 barrels to 105.7 million barrels.

June contracts for West Texas Intermediate crude traded at $123.57 per barrel by the close of floor trade on the New York Mercantile Exchange, a gain of $1.73 over Tuesday’s close, while Brent crude traded up $1.92 to $122.23 per barrel.

Nymex June gasoline and heating oil futures also both hit new highs during the session, at $3.1323 per gallon and $3.4535 per gallon respectively before sliding back a bit.

After a few days of declines, at-the-pump prices in the United States for unleaded regular gasoline and diesel fuel rose again overnight, again approaching near-record levels.

Gasoline added 0.8 cent overnight to $3.618 per gallon while diesel fuel was up 0.5 cent to $122.23 per gallon.