Crude oil in second day of declines

Crude oil prices fell for a second day in a row Wednesday after the US Energy Information Administration reported that inventories were up more than expected last week.

Crude oil stockpiles added 3 million barrels to 296.9 million barrels against an expected decline of 3 million barrels, but inventories remained 55.2 million barrels below last year at the same time.

Gasoline inventories added 2.4 million barrels to 214.2 million barrels while distillates in storage added 3.2 million barrels to 125.7 million barrels, as both remained above last year’s levels.

The EIA also reported that oil products demand was down 2 percent from last year during the same period.

August contracts for West Texas Intermediate crude were down $4.16 to $134.58 per barrel just before the close of floor trade on the New York Mercantile Exchange while at last report Brent crude had dropped $2.58 to $136.17 per barrel.

The declines were helped by reports that the United States will participate this weekend in talks between the European Union and Iran concerning Iran’s nuclear program, a change in the US policy not to negotiate with Iran.

Nymex August gasoline futures were down 11 cents to $3.27 per gallon and September heating oil fell 8 cents to $3.87 per gallon, while September natural gas dropped 8 cents to $11.49 per million British thermal units.

At the pump prices, however, rose again, with regular unleaded gasoline adding 0.5 cent to $4.114 per gallon on average across the US, while diesel fuel gained almost 1 cent to $4.839 per gallon.