After the U.S. government reported a larger than expected drop in gasoline inventories oil prices were steady Thursday after jumping more than US$3 a barrel in the previous session.
Traders ignored a large increase in crude oil stockpiles reported by the U.S. Energy Department Wednesday, focusing instead on the third straight week that gasoline stockpiles fell.
Light, sweet crude for May delivery fell 18 cents to US$104.65 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract on Wednesday jumped US$3.85 to settle at US$104.83 a barrel.
The department's Energy Information Administration said gasoline supplies fell 4.5 million barrels last week, twice the decline forecast by analysts surveyed by Dow Jones Newswires.
Falling gasoline inventories suggest supplies are tightening as the peak summer driving season approaches. That could boost prices of the motor fuel further, and keep oil prices elevated. But some suggested oil's gains in the previous session were overdone.
568
US Gasoline Stocks Decline Was Just A Tease For Oil Prices
After the U.S. government reported a larger than expected drop in gasoline inventories oil prices were steady Thursday after jumping more than US$3 a barrel in the previous session
