WTI climbs early, ends nearly even

Crude oil prices climbed only slightly Wednesday, erasing bigger gains that came when the US Energy Information Administration released its latest US inventories report.

The EIA said that while gasoline and distillates stockpiles were up in the week ending 4 July, crude oil inventories dropped b y 5.9 million barrels during the week, much more than had been anticipated.

Gasoline stockpiles added 900,000 barrels to 211.8 million barrels, 6.2 million barrels above last year at this time, while distillates in storage added 1.8 million barrels to 122.5 million barrels to climb to 100,000 barrels above last year’s level.

Prices were also pushed up earlier after Iran test-fired nine medium and long-range missiles during war games in the Persian Gulf in a perceived show of force only a day after the Iranian president laughed off the idea that Israel or the United States might attack his country.

One of the missiles tested was said to have a range of 1,250 miles, putting Israel, Turkey and Afghanistan within range of Iran.

August contracts for West Texas Intermediate crude ended up adding just 3 cents to $136.07 per barrel on the New York Mercantile Exchange, while Brent crude gained 5 cents to $136.48 on the ICE Futures Europe exchange in London.

Nymex August gasoline was up a cent to $3.37 per gallon and August heating oil was 6 cents higher to $3.88 per gallon but August natural gas dropped 37 cents to $12 per million British thermal units.

Nancy Pelosi, the Democratic Speaker of the US House of Representatives, called on President George W. Bush to open the US’ Strategic Petroleum Reserve in an effort to lower gasoline prices.

Although Mr. Bush recently agreed to stop shipping new oil to the reserve, he has repeatedly rejected suggestions that this oil be used to ease high prices.

The reserve, which is currently 97 percent full at 702 million barrels in storage, was last tapped in 2005 in the wake of supply disruptions following hurricanes Katrina and Rita.