Heating Oil Supplies Likely to Remain Low

U.S. crude oil inventories rose a greater-than-expected 2.7% last week, rebounding from a 24-year low and easing concern about tight supplies, the American Petroleum Institute said. The increase to 286.4 million barrels, after a revision of week-earlier data, still left inventories 10% lower than a year earlier. What’s more, API said distillate stocks--which include home heating oil--for the coming winter are likely to remain below normal levels. API reported that U.S. distillate inventories rose 1.9 million barrels to 113.2 million barrels for the week ended Aug. 11. Northeastern distillate stocks still are 37% below normal historical levels, API said, and 60% below what they were a year ago. Before the API data were released, near-term crude oil futures in New York fell 27 cents to $31.67 a barrel after hitting an early high of $32.70, as North Sea Brent futures in London jumped to their highest level since the Persian Gulf War.