Crude Oil Futures Rise on Unexpected Gasoline Inventory Decline

Crude oil futures rose in New York on January 28, 2009, as gasoline inventories unexpectedly fell, sparking concerns about summer supply levels. Despite falling demand, the market received support from a decline in fuel inventories. Gasoline stocks dropped 100,000 barrels in the week ended January 23, contrary to analysts' expectations of a 1.5-million-barrel build. The sharp decrease in gasoline inventories, combined with a large build in oil stocks, highlighted the oversupply in the market.

Key Takeaways:

• Crude oil futures rose 7 cents, or 0.2%, to $41.65 a barrel on the New York Mercantile Exchange, as gasoline inventories unexpectedly fell.
• Gasoline stocks declined 100,000 barrels in the week ended January 23, contradicting analysts' expectations of a 1.5-million-barrel build.
• Oil inventories rose 6.2 million barrels, exceeding the average analyst forecast of a 2.9-million-barrel gain and the American Petroleum Institute's report of an 800,000-barrel build.
• Refineries reduced runs by 0.8 percentage point to 82.5% last week, as plants reduced crude intake for maintenance and in response to falling demand.
• The Energy Information Administration (EIA) reported a 1-million-barrel decline in distillate stocks, including heating oil and diesel.

Statistics:

• Crude oil futures rose 7 cents, or 0.2%, to $41.65 a barrel on the New York Mercantile Exchange.
• Gasoline stocks declined 100,000 barrels in the week ended January 23.
• Oil inventories rose 6.2 million barrels.
• Refineries reduced runs by 0.8 percentage point to 82.5% last week.
• The EIA reported a 1-million-barrel decline in distillate stocks.

Sources:

• Dow Jones Commodities News via Comtex
• Brian Baskin, Dow Jones Newswires; brian.baskin@dowjones.com