Flat east coast inventories bounces oil futures
Oil futures rode a roller coaster on Wednesday as prices fell then rose after the release of the U.S. Department of Energy’s weekly inventory data.
Crude oil and gasoline inventories were both up again, while inventories of distillates such as heating oil and diesel were down. Crude oil inventories were up by 2.6 million barrels to 327 million barrels. This was the highest level in nearly six years.
Gasoline inventories increased by 2.2 million barrels to 213.5 million barrels. The increase in gasoline inventories reflects a slowdown in the growth of gasoline consumption in the U.S.
At the release of the report, prices fell as worries of tight supply on the world market eased, but when it became clear that inventories are growing mostly on the West Coast, while growth in inventories on the East Coast – which consumes the most oil of any U.S. region – were flat, prices rebounded.
June delivery IPE Brent fell to $49.66 per barrel but was back up to $51.37 per barrel by late afternoon in London. In New York, June Nymex WTI dropped to $48.80 per barrel before rebounding to $50.70 per barrel by early afternoon in New York.