Energy futures alternate between gains and losses on government inventory data

NEW YORK — Energy futures rose slightly today as investors sorted through conflicting interpretations of data from a government inventory report.

At the pump, meanwhile, retail gas prices, which typically lag the futures market, extended their declines.

Analysts say energy investors are engaged in a tug of war over the meaning of yesterday’s weekly inventory report from the Energy Department’s Energy Information Administration. The report showed crude oil stocks declined by 6.5 million barrels last week, far more than the 690,000-barrel decline analysts surveyed by Dow Jones Newswires, on average, had expected.
But it also showed a steep jump in refinery activity and an increase in gasoline inventories. The build in gasoline stockpiles was particularly significant in that it comes at the height of summer driving season, said Tim Evans, an analyst at Citigroup Inc.

“That certainly made a bearish statement,” Mr. Evans said. “We’re starting to recognize that an increased refinery operating rate is not necessarily a net bullish factor for the market.”

Pittsburgh Post-Gazette