Crude ends marginally lower

Prices drop as crude and gasoline inventories rise

Crude oil prices ended marginally lower at Nymex on Wednesday, 21 April 2010. Prices dropped after energy department reported unexpected rise in crude and gasoline inventories for last week. Better than expected earning reports at Wall Street tried to curtail crude's losses.

On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $83.68/barrel (lower by $0.17 or 0.2%). Last week, crude ended lower by 1.2%. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 4.2%.

Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 155% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.

On Wednesday, EIA reported larger-than-expected jumps in oil and gasoline inventories for last week. The report detailed that crude oil inventories rose 1.9 million barrels in the week ended 16 April. Gasoline stockpiles rose 3.6 million barrels versus expectations of a 100,000-barrel gain. Distillate stockpiles added 2.1 million barrels, also above expectations of 840,000 barrels.

Among earning reports at Wall Street, Boeing, McDonald's and United Technologies - all bested earnings expectations for the latest quarter. Fellow Dow component AT&T also reported an upside earnings surprise. Apple reported an upside earnings surprise after the prior session's close. These earning reports tried to put a brake on crude's drop.

Among other energy related products on Wednesday, June heating oil closed up 2 cents, or 1.1%, to $2.23 a gallon.

On Wednesday, natural gas for June delivery fell 2 cents, or 0.6%, to $4.04 per million British thermal units, and the front-month May contract slid 2 cents, or 0.5%, to $3.96 per million British thermal units.

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for April delivery closed lower by Rs 13 (0.34%) at Rs 3,740/barrel. Natural gas for April delivery closed at Rs 178.1/mmbtu, higher by Rs 1.9 (1.07%).