Oil prices ease as US inventories rise

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Thursday, June 5, 2003 (New York): Oil prices have dipped after data showed a rise in US crude oil and gasoline inventories, easing fears about tight supplies ahead of the US vacation season.

New York's light sweet crude July contract was down 62 cents to $30.05 in out-of-hours electronic trading yesterday.

The price of benchmark Brent North Sea crude oil for July delivery in London trade dipped 48 cents to $26.80 per barrel.

"The major factor today was the jump in crude oil (inventories) and imports," said Marshall Steeves at Refco. "Saudi Arabia provided a lot of oil as well as Venezuela," in shipments made ahead of the Iraq war that were starting to arrive now.

The US Department of Energy said crude oil inventories for the week to May 30 were up 2.8 million barrels to 289 million barrels.

A separate report by the American Petroleum Institute showed a rise of two million barrels to 288.37 million barrels.

Gasoline stocks rose 2.3 million barrels to 207.3 million barrels, according to DoE, after slippage the prior week. According to the API, the supplies increased 3.05 million barrels to 209.67 million barrels.

Some analysts had been concerned about declining gasoline stocks at the start of the US summer vacation season. (PTI)