Oil Prices Fall
Oil prices fell Thursday after U.S. weekly petroleum supply data showed an increase in inventories of gasoline and distillate fuels, including heating oil.
Crude oil supplies fell more than expected. Continued mild weather in America also contributed to prices falling as did the dissipation of fog in the Gulf Coast region that had hampered shipments.
The market also appeared to have factored in continued violence in Nigeria, where Total SA officials said about a dozen gunmen attacked a oil pumping station early Thursday, killing three police guards and shutting down the facility. Meanwhile, Royal Dutch Shell PLC began evacuating all family members of foreign workers as a precaution.
Light, sweet crude for February delivery fell 35 cents to $63.37 a barrel. February Brent crude at London's ICE Futures exchange slipped 36 cents to $62.87 a barrel.
The Nymex crude contract had risen 26 cents Wednesday to settle at $63.72 a barrel, a three-month closing high, after the U.S. Department of Energy said that crude inventories plunged by 6.3 million barrels last week from the previous week.
The decline was much greater than analysts' expectations of a drop between 1.8 million barrels and 2 million barrels.
However, there were expectations that stocks will rebound once fog lifts in the U.S. Gulf Coast region and shipping there returns to normal.
Since Dec. 11, the Gulf Coast region has been engulfed in dense fog, which has significantly disrupted shipments in and out of the ports, according to the Port of Houston Authority. The fog, however, appeared to be moving out Thursday.
Meanwhile, unleaded gas inventories posted an increase last week, rising by 1 million barrels but still lower than average.
Crude oil supplies fell more than expected. Continued mild weather in America also contributed to prices falling as did the dissipation of fog in the Gulf Coast region that had hampered shipments.
The market also appeared to have factored in continued violence in Nigeria, where Total SA officials said about a dozen gunmen attacked a oil pumping station early Thursday, killing three police guards and shutting down the facility. Meanwhile, Royal Dutch Shell PLC began evacuating all family members of foreign workers as a precaution.
Light, sweet crude for February delivery fell 35 cents to $63.37 a barrel. February Brent crude at London's ICE Futures exchange slipped 36 cents to $62.87 a barrel.
The Nymex crude contract had risen 26 cents Wednesday to settle at $63.72 a barrel, a three-month closing high, after the U.S. Department of Energy said that crude inventories plunged by 6.3 million barrels last week from the previous week.
The decline was much greater than analysts' expectations of a drop between 1.8 million barrels and 2 million barrels.
However, there were expectations that stocks will rebound once fog lifts in the U.S. Gulf Coast region and shipping there returns to normal.
Since Dec. 11, the Gulf Coast region has been engulfed in dense fog, which has significantly disrupted shipments in and out of the ports, according to the Port of Houston Authority. The fog, however, appeared to be moving out Thursday.
Meanwhile, unleaded gas inventories posted an increase last week, rising by 1 million barrels but still lower than average.
posted by Ottawa Gas Prices | 5:24 AM
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