[video] Quick Take: Oil Prices Slip as Crude Inventories Jump, Distillates Dip
NEW YORK (TheStreet) -- Crude oil is slightly lower on Wednesday as a massive draw in distillates helped to offset a larger-than-expected build in inventories.
Independent energy trader Cindy Wexler told TheStreet's Joe Deaux that oil prices would be lower without the big draw in distillates and without the sustained cold temperatures.
She added that the stable momentum in heating oil has also helped to prop up oil prices. Oil prices typically decline as inventory increases. Add in the recent negative economic news and crude prices would almost certainly be lower.
Wexler suggested that as we move out of winter and into spring, oil prices will likely come under pressure as oil distillate draws begin to decrease. WTI crude prices could work its way lower towards $90 per barrel.Turning to natural gas, President Obama referred to the fuel several times during last night's State of the Union address.
Wexler suggested that natural gas prices could get a boost since the President and the government seem to be backing a plan for improving the current infrastructure. Currently, there's not enough infrastructure to get the gas that we have to the places that we need when there is sustained, brutally cold temperatures, she concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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