Crude down on inventory rise

30/07/2009

Crude oil futures trading on the New York Mercantile Exchange fell in electronic activity this morning (July 30th), weighed down by another weak demand report from the Energy Information Administration (EIA).

The latest report from the group showed crude oil inventories rose 5.1 million barrels last week, while heating oil and propane also rose. Meanwhile, gasoline stocks were down, supported by increased seasonal demand for the fuel.

Speaking to Bloomberg, Stephen Schork, president of consultant Schork Group in Villanova, Pennsylvania, said that a recovery in demand for crude was nowhere to be seen.

He lamented: "Since the start of the US driving season in late May demand has been trending the wrong way. The same can be said for the other key products, distillates and aviation kerosene."

Wholesale heating oil has also traded lower in New York this morning as Asian and European investors react to the data.