Rising Oil Prices Down Reserves

NEW YORK: Crude oil rose to a high level two years after a report showed a decline in inventories of oil imports and refinery production are also increasing the value of the operation.

Oil rose 1.3% as a supplier dropped 3.27 million barrels to 364.9 million last week, according to Energy Department report. Oil reserves expected to rise by 1.5 million barrels, according to a survey by Bloomberg News. Inventories of gasoline and distillate fuel, a category that includes heating oil and diesel, declined further than expected.

Crude oil for December delivery rose U.S. $ 1.09 to U.S. $ 87.81 per barrel on the New York Mercantile Exchange, the highest settlement level since October 8, 2008. Futures contract is also counted up 11% from a year ago.

Brent crude oil for December settlement rose 63 cents, or 0.7%, to U.S. $ 88.96 per barrel on the ICE Futures Europe Exchange. This is the highest price since October 3, 2008.

Gasoline stockpiles dropped 1.92 million barrels to 210.3 million, the lowest level since the week ending 20 November 2009.

Gasoline for December delivery rose 5.12 cents, or 2.3%, to U.S. $ 2.2362 per gallon in New York, the highest settlement since May 4.

The volume of trade in futures contracts for oil on the New York Mercantile Exchange reached 808,811 contracts in the afternoon yesterday in electronic trading in New York. Yesterday, a total volume of contracts reached 685,832, or 2.65 below the average of the past 3 months.

By                    : Henry Sandee, (senior trade specialist World Bank)

Source              : Bisnis.Com