Energy Information Administration Reports Increase in Oil Inventories

Energy Information Administration released its weekly report on crude oil inventories on Wednesday, according to which oil supplies for the week ending March 30th, 2012 surged 9 million barrels while analysts expected increase of 1.9 million barrels for the respective week. EIA also reported its data on gasoline stockpiles which fell by 1.5 million barrels for the week as compared to analysts’ expected decrease of 1.6 million barrels.

Distillates stockpiles which include diesel and heating oil remained flat while analysts were expecting the decline of 600,000 barrels.

The crude oil inventories data which gained 5 times more than what the analysts were expecting on average resulted in substantial fall in crude oil prices. Crude oil futures contract for May delivery plunged 2.4 percent or $2.54 to settle at $101.47 per barrel on the New York Mercantile Exchange. The respective contract touched it’s lowest since February 14th, 2012.

The stronger greenback also resulted in pressure on commodities as its makes commodities more expensive for investors in foreign currencies. The dollar index DXY which measures the US dollar performance versus its six major counterparts gained to 75.792 on Wednesday as compared to 79.410 on Tuesday’s North American trading session.

Among other energy commodities, gasoline futures contract for May delivery fell 1.8 percent or $0.06 to settle at $3.33 per gallon. Heating oil futures contract for the same month delivery slipped 2.1 percent or $0.07 to settle at $3.16 per gallon.

Natural gas futures contract for May delivery declined 2.1 percent or $0.05 to settle at $2.14 per million British thermal units.

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