Crude oil futures were up again on the news of a lower-than-expected rise in winter distillate inventories including heating oil and diesel.
According to the Energy Department report released yesterday, distillate stocks were up 1.4 million barrels to 119.3 million in the week ended December 3, contrary to the expectations of a 1.5 million rise. The rise in heating oil supplies was the smallest in two months. Energy Department reports a rise in crude stocks of 600,000 barrels bringing the total supplies to 293.4 million barrels.
Report of the American Petroleum Institute (API), however, shows a drop in distillate inventories in the week ended Dec. 3. Their data state that stocks dropped 1.2 million barrels to 120.8 million. The report shows a rise of 583,000 barrels in crude stocks that now total 295.1 million, and a 2.6 million barrels rise in gasoline stocks that reached 207.3 million barrels.
``Distillate demand seems pretty strong,’’ said Steve Taylor, a trader with New West Petroleum Inc. in Sacramento, California. ``People are concerned that when it does turn cold, demand is going to pick up.’’
Crude oil for January delivery was up 38 cents to $42.32 a barrel in after-hours electronic trading on the NYMEX. This is still a 33% drop from the record of $55.67 a barrel reached Oct. 25.