Oil prices higher on report showing unexpected drop in U.S. gasoline inventories

[Purveyor]

NEW YORK: Oil prices rose Wednesday after the government's weekly U.S. petroleum supply report showed a large and unexpected decline in gasoline stockpiles.

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The report by the U.S. Department of Energy's Energy Information Administration showed that crude oil inventories rose by 2.1 million barrels in the week ending Friday to 334.5 million barrels. Traders had expected crude oil inventories to fall by 1.2 million barrels on average, according to a Dow Jones Newswires survey of analyst estimates.

On the other hand, gasoline inventories fell by 2.8 million barrels. Analysts had expected a 200,000-barrel increase in gasoline inventories. Distillate stockpiles, which include heating oil and diesel fuel, remained flat as heating oil inventories fell while diesel stockpiles rose.

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Evans and other analysts worry whether there is enough gasoline to meet summer driving demand.

"Market participants are concerned that, even though U.S. refineries are increasing production, they will not be able to fully satisfy demand ahead of the busy summer driving season," said Michael Davies, an oil analyst at Sucden in London.

---eoe---

http://www.iht.com/articles/ap/2007/04/25/business/NA-FIN-MKT-Oil-Prices.php

[Hubert Flottz]

1. Congress needs to check for gouging.

When they get time.

[earthboundmisfit]

2. Somethin' smells to high heaven

about this... Yup. Smells like MONEY.

[hatrack]

3. "Unexpected"? WTF? Inventories have fallen for, what 11 weeks straight now?

"Unexpected"? :eyes:

[lildreamer316]

4. Gee. There's a suprise.

Sure didn't see this one coming; with my gas currently at $2.85/gal. Nope; never woulda guessed.
:sarcasm:

[TahitiNut]

5. It sounds like they're restricting refinery production again.

Increased "maintenance" and shutdowns for output change-over ... it's a game the refiners have played before.