Crude Off Slightly
Posted on: Jan 15th, 2009 | By Doug Casey | Filed under Financial News
In the energy market on Tuesday, oil slipped lower, with crude for February delivery closing at $37.28/barrel, down 50 cents. February reformulated gasoline added 1.9 cents, to $1.1677/gallon.
In its monthly inventory report, the Energy Information Administration said that crude stockpiles gained 1.2 million barrels for the week ended January 9. Gasoline supplies were up 2.1 million barrels, while distillates soared by 6.4 million. Refineries operated at 85.2% of capacity last week, up from the previous week’s 84.6%.
Crude stocks at Cushing, Oklahoma, the delivery point for crude futures traded on the New York Mercantile Exchange, rose 2.5% to 33 million barrels. They’re up 20% in four weeks, and are approaching Cushing’s operable storage capacity of about 34 million barrels, according to Platts.
“The substantial build in heating oil and diesel as well as a new record for oil supplies at Cushing should add to downward pressure on prices of all petroleum products and crude,” said James Williams, of WTRG Economics.
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