Oil prices slipped below $63 Wednesday after a larger-than-expected build in U.S. gasoline stocks. U.S. crude moved down 54 cents at $62.55 a barrel on the New York Mercantile Exchange, while London Brent crude fell 50 cents to $61.06 a barrel.
Weekly U.S. government data showed gasoline stocks rose 4.3 million barrels last week, more than twice the forecasted rise. This build-up increased the U.S. supply cushion before the upcoming refinery maintenance season. The maintenance shutdowns are expected to be longer than normal as companies prepare for new greener fuel regulations coming on line this year.
Ironically, the same report also showed a drop in crude oil inventories of 300,000 barrels to a level of 320.7 mln barrels in the week to Feb 3, in contrast to market expectations of a rise of 700,000 barrels. Reserves of distillates, used for heating and diesel fuel, reduced by 300,000 barrels to 136 mln, compared to the market's forecast rise of 150,000 barrels. Both these stock levels were 10 to 12 percent higher than levels at the same period last year.
Oil prices have fallen in five of the last six sessions as fund managers take profits, following the same pattern as gold.
09-Feb-06 
