EIA Report Increase of 2.9 Million Barrels in Oil Inventories

The Energy Information Administration on Wednesday released its inventories report according to which crude oil supplies increased by 2.9 million barrels for the week ending June 15th, 2012. Analysts on the other hand analysts on average forecasted the decrease 600,000 barrels for the respective week.

The EIA also reported the increase of 900,000 barrels in the gasoline inventories as compared to analysts’ expected gain of 600,000 barrels. Distillates stockpiles which include heating oil and diesel increased 1.2 million barrels while analysts projected the gain of 600,000 barrels for the week.

The surprise increase in crude oil inventories kept the crude oil futures under pressure despite the fact that the US Federal Reserve decided to keep its interest rates unchanged and indicated to continue its “Operation Twist” program till end of the current year. The US Federal Reserve also reduced its growth and inflation forecast and projected that the unemployment rate will remain above 8 percent in the current year. All the economic facts directed towards the weakening of the greenback.

Crude oil futures contract for July delivery fell 2.7 percent or $2.23 to settle at $81.90 per barrel on the New York Mercantile Exchange.

Gasoline futures for July also touched their record lowest since December 20th, 2011. Gasoline futures contract for July delivery dropped 1.9 percent or $0.05 to settle at $2.60 per gallon. Heating oil futures for the same month slipped 1.8 percent or $0.05 to settle at $2.59 per gallon.

Natural gas futures contract for July delivery dropped 1.1 percent or $0.03 to settle at $2.52 per million British thermal units.


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