Oil Ends Year to the Upside

Higher supplies pushed wholesale unleaded gasoline prices down by 4 cents to $1.54 a gallon.

Predictions of above-average temperatures for the Midwest and Northeast, the country's biggest markets for heating oil, dampened heating fuel prices. The National Weather Service, in a new 10-day outlook, expects mild temperatures to remain in those areas through Jan. 7. Heating oil slipped 2 cents to $1.59 a gallon.

Natural gas inched up 5 cents to $6.29 per million British thermal units as traders closed out positions before the new year.

Last week, natural gas inventories fell 46 billion cubic feet to 3.12 trillion cubic feet, the Energy Department reported in its weekly update. The report was delayed one day because of the closing of the federal government on Monday. Supplies are nearly 13% above the five-year average and 17% higher than last year at this time.

Energy shares were trading modestly lower on the Amex Oil and Philadelphia Oil Service indices, down as much as 0.8%. Hess(HES Quote), Valero Energy(VLO Quote) and Anadarko Petroleum(APC Quote) were falling the most, with losses as steep as 1.7%.

Exxon Mobil(XOM Quote), the biggest publicly traded energy company, was down 0.4% at $77.03.

National Oilwell Varco(NOV Quote), Nabors Industries(NBR Quote) and Tidewater(TDW Quote) were posting the largest declines among oil service firms, down as much as 1.6%.