Oil Futures Prices Mixed
Petroleum futures were mixed in cautious trading Tuesday prior to the release of supply-demand data that pointed toward a further slide in prices.
The data, released after the close of trading “was as bearish as could be,” said Richard Marose, an analyst in Chicago with Geldermann Inc.
For the fourth consecutive week, the data compiled by the American Petroleum Institute showed a buildup in gasoline stocks.
The latest numbers, which included the Memorial Day weekend, showed that 6.369 million barrels of gasoline were added to the nation’s stocks during a week’s time.
Earlier this spring there were predictions that driving could increase this summer by as much as 10% or more over last year because of fears of vacationing overseas and cheaper gasoline.
In view of the continuing buildup in gasoline stock, “demand is going to have to be at its most optimistic” to keep prices from sliding further, Marose said.
Memorial Day demand typically has been a good clue as to summer driving intentions, and the latest figures seem to indicate “fairly indifferent demand,” he said.