By OGJ editors
HOUSTON, May 5 -- Energy prices escalated May 4 although the Energy Information Administration reported higher than expected US crude inventories.
EIA reported commercial US crude inventories during the week ended Apr. 29 jumped by 2.6 million bbl to 327 million bbl, the highest level since the end of March 2002. Gasoline stocks climbed by 2.2 million bbl to 213.5 million bbl in the same week, but distillate fuel fell by 300,000 bbl to 102.3 million bbl.
US imports of crude were down by 604,000 b/d to an average 10.3 million b/d during the reported period. However, total gasoline imports averaged more than 1 million b/d for the fourth consecutive week, "the first time this has ever happened," said EIA.
Crude input into US refineries increased by 92,000 b/d to 15.4 million b/d in the period, with refineries operating at 91.7% capacity. However, gasoline production declined slightly during the week while distillate fuel production surged.
Energy process
The June contract for benchmark US light, sweet crudes gained 63¢ to $50.13/bbl May 4 on the New York Mercantile Exchange, while the July contract advanced by 67¢ to $51.90/bbl. On the US spot market, West Texas Intermediate was up by 63¢ to $50.14/bbl. Heating oil for June delivery escalated by 1.85¢ to $1.45/gal, and gasoline for the same month increased by 0.7¢ to $1.47/gal.
The June natural gas contract was up by 11.5¢to $6.63/MMbtu on NYMEX. "The [investment] funds did not want [prices] to go down so it didn't," said analysts at Enerfax Daily. "This is all about funds defending the long-term trendline, catching most everybody else short."
In London, the June contract for North Sea Brent crude was up by 45¢ to $50.97/bbl on the International Petroleum Exchange.
The office for the Organization of Petroleum Exporting Countries in Vienna was closed May 5 for a public holiday, so there was no report on the group's basket price.
