US crude oil inventories fell in the past week after a tropical storm hit production in the Gulf of Mexico, government data showed today.
The Department of Energy said US crude oil stocks fell by 3.9 million barrels in the week to July 8 to 321 million barrels, still 'well above the upper end of the average range for this time of year'.
In its own survey, the American Petroleum Institute (API) said crude stocks fell by 1.46 million barrels to 321.65 million over the week.
'The inventory numbers are a reflection of the outcome of Tropical Storm Cindy,' the Department of Energy said. It said the impact of Hurricane Dennis would be seen in next week's inventory numbers, after the deadly storm forced the evacuation of Gulf of Mexico oil rigs last weekend.
The DoE said petrol stocks decreased by 2.7 million barrels last week to 212.6 million barrels. Meanwhile, the API reported a rise for petrol of 684,000 barrels.
The DoE also reported that levels of distillate products, used for heating oil and diesel, rose by 3.2 million barrels for the week to 120.4 million barrels, above average for this time of year. The API reported a bigger rise in distillates of 5.83 million barrels.
World oil prices fell after the inventory figures, despite an earlier warning from the International Energy Agency that high oil prices were here to stay in a world of uncertainty over tropical storms and geopolitical factors such as the London bombings.
New York's main contract, light sweet crude for delivery in August, lost 22 cents to $60.40 a barrel after closing up $1.70 on Tuesday on storm concerns. In London, the price of Brent North Sea crude oil shed 26 cents to $58.56 after ending $1.38 higher on Tuesday.
