Energy Prices Drift Higher

Updated from 12:45 p.m. EDT

Energy futures mostly advanced Wednesday after the Energy Information Administration unveiled inventory figures that didn't stray too far from analyst estimates.

The near-term contract for crude oil edged 23 cents higher to $58.16 a barrel on the New York Mercantile Exchange. Reformulated gasoline was unchanged at $1.93 a gallon. Heating oil closed 2 cents better at $1.71 a gallon.

The April contract for natural gas rose 19 cents to $7.08 per million British thermal units.

The EIA reported that crude inventories grew by 1.1 million barrels during the week ended March 9. A survey conducted by Reuters had estimated a 1.9-million-barrel increase. Analysts were expecting that distillates would decrease by 1.8 million barrels, whereas the EIA reported a 2.8-million-barrel decline.

Motor gasoline stores fell by 2.5 million barrels, according to the EIA, essentially in line with forecasts.

After dropping to a low near $57.50 in early trading, crude futures reversed course. Gasoline prices followed a similar trajectory. According to Thomas Hartmann, energy analyst at Altavest Worldwide Trading, strong demand for gasoline is driving crude prices higher.

"[Reformulated gasoline blendstock for oxygen blending] futures remain in charge of setting the spread between crude oil and gasoline prices," said Hartmann.

Hartmann also said refinery problems in the U.S. are boosting prices for gasoline. Refineries operated at 85.6% capacity during the week ended March 2, according to the EIA report. That was about a quarter-point less than in the previous week.