Lots of Oil, But Prices Steady
Oil prices fell Wednesday after a government report showed crude stockpiles ballooned four times as much as expected.
U.S. light sweet crude for March delivery fell 12 cents to $59.45 a barrel on the New York Mercantile Exchange. Just before the Energy Information Administration released its report, the contract was up 29 cents to $59.86.
The government report showed crude supplies swelled by 4.9 million barrels in the week ended Feb. 10 to 325.6 million barrels, the highest level since the end of last June. The rise more than exceeded estimates for a build of 1.2 million barrels.
Gasoline stocks rose for the seventh straight week, jumping by 2.2 million barrels to 225.5 million barrels, their highest level since June 1999, the EIA said. Analysts were looking for a 1.6 million barrel jump in gasoline supplies.
Crude prices fell, but didn't make large moves on the report. "Even though the EIA data is what one would say is bearish, you have to put it into perspective," said Tom Kloza, chief oil analyst at New Jersey-based Oil Price Information Service, pointing to the recent slump in oil prices.
February slump
Oil prices have steadily declined since the beginning of February, losing about 11 percent. On Tuesday, the front-month crude contract fell below $60 for the first time in 2006, while gas futures sank as low as $1.3849 a gallon, their lowest in nearly a year.
But prices could snap back, especially as uncertainty surrounding Iran's nuclear program mounts.
"The story of the (oil) market these days is wild swings. Geopolitical events could surface at any moment that could lead to a temporary spike," Kloza said.
And while storage supplies may be swelling, worldwide daily consumption keeps growing.
Kloza also said a milder-than-usual winter, despite a recent snowstorm in the Northeast, has also contributed to the slump in prices.
The EIA said distillates, used to make heating oil, rose by 900,000 barrels in the latest week, versus an expected decline of 700,000 barrels.
CNN
U.S. light sweet crude for March delivery fell 12 cents to $59.45 a barrel on the New York Mercantile Exchange. Just before the Energy Information Administration released its report, the contract was up 29 cents to $59.86.
The government report showed crude supplies swelled by 4.9 million barrels in the week ended Feb. 10 to 325.6 million barrels, the highest level since the end of last June. The rise more than exceeded estimates for a build of 1.2 million barrels.
Gasoline stocks rose for the seventh straight week, jumping by 2.2 million barrels to 225.5 million barrels, their highest level since June 1999, the EIA said. Analysts were looking for a 1.6 million barrel jump in gasoline supplies.
Crude prices fell, but didn't make large moves on the report. "Even though the EIA data is what one would say is bearish, you have to put it into perspective," said Tom Kloza, chief oil analyst at New Jersey-based Oil Price Information Service, pointing to the recent slump in oil prices.
February slump
Oil prices have steadily declined since the beginning of February, losing about 11 percent. On Tuesday, the front-month crude contract fell below $60 for the first time in 2006, while gas futures sank as low as $1.3849 a gallon, their lowest in nearly a year.
But prices could snap back, especially as uncertainty surrounding Iran's nuclear program mounts.
"The story of the (oil) market these days is wild swings. Geopolitical events could surface at any moment that could lead to a temporary spike," Kloza said.
And while storage supplies may be swelling, worldwide daily consumption keeps growing.
Kloza also said a milder-than-usual winter, despite a recent snowstorm in the Northeast, has also contributed to the slump in prices.
The EIA said distillates, used to make heating oil, rose by 900,000 barrels in the latest week, versus an expected decline of 700,000 barrels.
CNN
posted by Ottawa Gas Prices | 9:31 AM
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