Oil inventories up, prices decline

Crude oil prices fell again on Wednesday as weekly inventory numbers showed unexpected increases in stockpiles of both crude oil and gasoline. Crude oil inventories were up by 2.4 million barrels last week as imports reached an average of 11.2 million barrels per day. It had been expected that inventories would be down by 1.5 million barrels as refineries increased their activity. Gasoline stockpiles were up by 400,000 barrels, when a decrease of 700,000 barrels had been anticipated. In addition, inventories of distillates were up 1.3 million barrels, about what had been expected by analysts.

Brent crude for October delivery declined by 68 cents to $69.18 per barrel in London, while October contracts for West Texas Intermediate crude on the New York Mercantile Exchange dropped 81 cents to $68.90 per barrel. Nymex September unleaded gasoline was 2.17 cents lower to $1.7675 per gallon.

Metals prices were mixed on Wednesday. Three-month copper dropped $50 to $7,350 per tonne on reports that a provisional settlement has been reached in the Escondida mine strike in Chile, with a vote to be taken on Thursday. Nickel was also lower, dropping $1,025 to $27.450 per tonne as London Metal Exchange inventories grew slightly. Aluminium, however, was $14.5 higher to $2,484.5 per tonne.

Gold added $5.30 to $617.30/$618.05 after going as low as $606.80 on Tuesday. An indication that the Federal Reserve will not raise interest rates in the near term, as well as concerns of a dispute between Iran and Western nations over Iran’s nuclear program helped the precious metal’s advance.

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