By OGJ editors
HOUSTON, Apr. 7 -- Energy futures prices shot up Wednesday after the US Energy Information Administration reported a large drop in commercial US crude inventories, breaking a chain of recent weekly gains.
EIA said US crude stocks plunged by 2.1 million bbl to 292.2 million bbl during the week ended Apr. 2. US gasoline inventories fell by 800,000 bbl to 200.1 million bbl, while distillate stocks plummeted by 4.5 million bbl to 105.2 million bbl during the same period. Many traders were surprised by the large draw on US crude reserves and continued strong demand for gasoline, analysts reported.
The May contract for benchmark US light, sweet crudes jumped by $1.18 to $36.15/bbl Wednesday on the New York Mercantile Exchange, while the June position was up by $1.22 to $35.60/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., gained $1.17 to $36.15/bbl.
Gasoline for May delivery soared by 3.91¢ to $1.1125/gal on NYMEX. Heating oil for the same month increased by 3¢ to 90.59¢/gal. The May natural gas contract gained 6.3¢ to $5.87/Mcf on NYMEX, pushed by the jump in oil prices and forecasts for continued cold weather through next week.
In London, the May contract for North Sea Brent crude escalated by $1.10 to $32.45/bbl Wednesday on the International Petroleum Exchange. Gas oil for April delivery was up by $14.50 to $289.50/tonne. The May natural gas contract shot up by 8.4¢ to the equivalent of $3.84/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes jumped by $1.10 to $31.32/bbl Wednesday.