Crude prices drop despite declines in US inventories

Crude oil prices were lower Thursday despite new inventories numbers from the US Energy Information Administration which showed that stockpiles of oil, gasoline, and distillates were all lower last week.

Inventories of crude oil were down 1.9 million barrels in the week ending 29 August, while gasoline stockpiles dropped by 1 million barrels to 194.4 million barrels, still over 3 million barrels above inventories last year at this time, and distillates in storage were 400,000 barrels lower than last week.

The declines in gasoline stockpiles were not as large has had been expected, and part of the declines was explained by a drop in gasoline imports last week that were primarily due to preparations ahead of Hurricane Gustav.

Most oil and natural gas production in the Gulf of Mexico remains closed as companies work to return crews to offshore platforms.

At the close of floor trade on the New York Mercantile Exchange, West Texas Intermediate crude for October delivery was down $1.52 to $107.83 per barrel, while at last report October contracts for Brent crude were down $1.63 to $106.43 per barrel.