The light, sweet crude oil prices for May delivery fell nearly $2/bbl on the New York market Apr. 19 while Brent crude oil for June delivery also fell nearly $2/bbl on the London market after an unexpected build in US gasoline inventories.
The growth in gasoline supplies pointed to weak demand during a season when gasoline consumption typically rises. Analysts said that development contributed to the sharpest drop in crude prices since Mar. 8.
The US Energy Information Administration said total motor gasoline inventories increased 1.5 million bbl. Meanwhile, EIA estimated US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, fell 1 million bbl to 532.3 million bbl for the week ended Apr. 14.
The US crude oil inventory has dropped for two consecutive weeks.
EIA’s Petroleum Status Report said US oil production gained 17,000 b/d to 9.252 million b/d with Lower 48 production up by 21,000 b/d to 8.722 million b/d. Alaska production dropped by 4,000 b/d for the week ended Apr. 14 to 534,000 b/d.
Energy prices
The May crude oil contract on the New York Mercantile Exchange dropped $1.97 on Apr. 20 to close at $50.44/bbl. The June contract decreased $2 to $50.85/bbl.
The natural gas price for May gained 4¢ to a rounded $3.19/MMbtu. The Henry Hub cash gas price was up 6¢ to $3.12/MMbtu.
Heating oil for May fell 4¢ to a rounded $1.58/gal. Reformulated gasoline stock for oxygenate blending for May plunged by 5¢ to a rounded $1.66/gal.
The Brent crude contract for June on London’s ICE fell $1.96 to settle at $52.93/bbl. The July contract was down $2.01 to $53.43/bbl. The May gas oil contract declined $3.50 to $487.75/tonne.
The Organization of Petroleum Exporting Countries reported a basket of crudes closed Apr. 19 at $487.75/bbl, down $3.50 from the previous session.
Contact Paula Dittrick at [email protected].
