Crude, Gasoline, Heating Oil Slip for Third Day: Oil Products

Crude oil, gasoline and heating oil dropped for the third straight day after the U.S. Energy Department reported that crude stockpiles surged last week and a private report showed that employment rose less than expected, reducing optimism that the economy will keep expanding at current rates. Ethanol was little changed.

Crude Oil

Crude oil for June delivery fell $1.81, or 1.6 percent, to $109.24 a barrel on the New York Mercantile Exchange. Prices have slipped 4.1 percent this week.

Inventories of crude oil advanced for the eighth time in nine weeks, growing 3.42 million barrels to 366.5 million, the highest level since October, the Energy Department reported. An increase of 2 million barrels was the median estimate of economists surveyed by Bloomberg. Days of supply increased to 26.1, the highest level in six months, from 25.7.

Gasoline

Gasoline for June delivery dropped 0.69 cent to $3.3225 a gallon on the Nymex. Gasoline has risen 43 percent in a year.

Stockpiles declined for the 11th week in a row, dropping 1.05 million barrels to 204.5 million. Demand declined 2.2 percent to 8.94 million barrels a day. Days of supply declined for the 11th time in 12 weeks, dropping to 22.5 days, the lowest level since September 2009, from 22.7.

Heating Oil

Heating oil for June delivery slipped 4.78 cents, or 1.5 percent, to $3.143 a gallon. Heating oil has gained 39 percent in the past year.

Distillate inventories fell for the fourth straight week, dropping 1 percent to 145.1 million barrels. Days of supply declined to 37.4, a two-year low, from the previous 38.3.

Ethanol

Denatured ethanol for May delivery gained 0.1 cent to $2.621 a gallon on the Chicago Board of Trade. The fuel additive has increased 64 percent in the past year.