Crude prices gain despite higher US inventories

The US Energy Information Administration reported Wednesday in its weekly inventories report that crude oil in US storage added 4.1 million barrels last week to 341.6 million barrels, above the expected build of 1.1 million barrels but 3.7 percent below stockpiles last year at this time.

Additionally, the EIA said that gasoline inventories were up by 700,000 barrels, while stockpiles of distillates fell by 900,000 barrels, slightly less of a drawdown than had been expected.

Despite the gain in crude oil and gasoline inventories, April contracts for West Texas Intermediate crude was up 98 cents to $80.66 per barrel at midday on the New York Mercantile Exchange, while Brent crude was up 87 cents to $79.05 per barrel on the ICE Futures Europe exchange in London.

The gains in the price of crude oil came on a weaker US dollar and as refineries ramped up production for the fourth week in a row, operating at 81.9 percent of capacity last week as they began to prepare for the upcoming summer driving season in the US.

Nymex April gasoline futures were up 4 cents to $2.24 per gallon at last report, while April heating oil added 3 cents, to $2.09 per gallon, and April natural gas gained 7 cents to $4.77 per million British thermal units.

The retail price of a gallon of gasoline in the US remained steady overnight at $2.703 per gallon.