Crude gains on US inventories, OPEC decision

Crude oil prices were up Thursday after the US Energy Information Administration reported that US inventories fell much more than expected last week and after the Organization of Petroleum Exporting Countries decided at its meeting in Vienna to hold production quotas steady at 24.85 million barrels per day.

The EIA said that crude oil stockpiles fell by 5.4 million barrels in the week ending 22 May against an expected increase of 1.8 million barrels, although crude oil inventories remain 17.9 percent higher than last year at the same time.

Gasoline inventories were down 600,000 barrels, less of decline than the 1.7 million barrel drop expected, while distillates in storage added 300,000 barrels, a smaller gain than had been anticipated.

Gasoline demand was reported to have dropped 0.4 percent over the past four weeks when compared to the same period last year, while refinery utilization was up 3.3 percent last week to 85.1 percent.

At around half an hour before the close of floor trade, West Texas Intermediate crude for July delivery had added $1.56 to $64.30 per barrel on the New York Mercantile Exchange while Brent crude was $1.80 higher to $64.30 per barrel on the ICE Futures Europe exchange in London.

Nymex June gasoline futures added 2 cents in afternoon trade to $1.91 per gallon, while the retail price for a gallon of gas added 1.5 cents overnight to $2.449 per gallon on average in the US.