Crude Oil Inventories Decline by 200,000 Barrels, Reports EIA

The Energy Information Administration published its report on crude oil supplies on Wednesday according to which crude oil inventories declined by 200,000 barrels for the week ending June 8th, 2012. Analysts on average expected the decline of 2 million barrels in crude oil stockpiles while another trade group, the American Petroleum Institute reported the decrease of 1.6 million barrels in crude oil supplies for the week.

Gasoline inventories were reported to decline by 1.7 million barrels while analysts hoped for gain of 1 million barrels for the respective week. Distillates inventories which include diesel and heating oil dropped by 100,000 barrels as compared to expected increase 1 million barrels.

Crude oil futures contract for July delivery declined 0.8 percent or $0.70 to settle at $82.62 per barrel on the New York Mercantile Exchange. Decrease in supplies data usually results in boosting oil prices however the weaker US economic data kept the oil and other energy commodities under pressure.

Producer price index fell 1 percent in May as reported by the US Labor Department which is also the biggest drop in a month in last three year. Moreover, the US Commerce Department reported the decline of 0.2 percent retail sales for the last month.

Investors were also looking up to the upcoming meeting of the Organization of the Petroleum Exporting Countries in Vienna where production quotas are to be discussed. According to the Saudi Arabia’s oil minister Ali al-Naimi, OPEC production level will not be changed. OPEC maintains the ceiling of 30 million barrels per day on collective basis however, according to analysts production in May by OPEC stood at 31.75 million barrels per day.

Among other commodities, gasoline futures contract for July delivery fell 0.2 percent or $0.05 to $2.66 per gallon while heating oil futures for the same month declined 0.4 percent or $0.01 to settle at $2.61 per gallon.

Natural gas futures contract for July delivery dropped 2.1 percent or $0.05 to $2.19 per million British thermal units.

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