Crude futures ended lower for the fifth straight day on Tuesday on concerns about the pace of economic recovery and continued weak demand amid swollen inventories. Industry data showed that gasoline and distillate inventories rose more than expected last week. U. S. natural gas futures ended lower for the sixth straight trading day Tuesday, pressured along with weaker crude futures, mild weather across the Northeast and a quiet tropical front.

IN FOCUS:

The industry group American Petroleum Institute, in a report, said that domestic crude inventories fell 1.4 million barrels to 348.3 million barrels in the week to July 3. The federal Energy Information Administration will release its own inventory report on Wednesday.

BP Plc said on Tuesday that an upset at a crude unit at its 475,000-barrel-per-day refinery in Texas City, Texas caused flaring at the refinery. The filing did not specify whether the upset caused an impact on production.

The U. S. National Hurricane Center said Tuesday it did not expect any tropical development for the next 48 hours. The latest National Weather Service six to 10-day outlook issued Monday called for above-normal readings for the Southern U. S. and in a small section of the Northwest, with below-normal temperatures along the Northeast and in the Midwest.

FUNDAMENTAL OUTLOOK:

Crude oil prices weighed down on the expectation that gasoline and distillate inventories might show larger than expected built. The trend is down in crude oil for the day. Natural gas prices may also trade sideways to down due to weakness indemand.