Crude prices up despite rising oil, gasoline inventories in US

Crude oil prices were down Wednesday directly after the US Energy Information Administration issued its weekly US inventories report, but by midday prices in New York had more than made back those early declines.

The EIA reported that crude oil inventories grew by 1.3 million barrels last week, while gasoline stockpiles jumped by 3.7 million barrels when they had been expected to add only 1.2 million barrels.

Distillates in storage was down by 300,000 barrels, but they had been anticipated to decline by 1.8 million barrels.

In midday trade, February contracts for West Texas Intermediate crude were up $1.00 to $82.77 per barrel, but at last report, Brent crude for February delivery had dropped 45 cents to $80.14 per barrel on the ICE Futures Europe exchange in London.

Earlier, by mid-morning in New York, Nymex February gasoline futures were down 2 cents to $2.11 per gallon while February heating oil futures had dropped 1 cent to $2.18 per gallon.

In metals trade, three-month copper on the London Metal Exchange was up $250.25 to $7,735.25 per tonne in late afternoon trade, while March copper added 8 cents to $3.49 per pound in New York, gaining on data showing that US factory orders are up and that automobile sales were trending higher at the end of 2009.

Prices rose even though LME inventories of the metal used in manufacturing and construction gained 2,050 tonnes to 507,400 tonnes, an indication that demand remains weak.

Aluminium, zinc, lead, tin and nickel prices all also saw gains.

Among precious metals, February gold added $17.80 to $1,136.50 per troy ounce, March silver was up 38 cents to $18.18 per troy ounce and April platinum gained $20.10 to $1,557.90 per troy ounce.

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