The price of oil rose more than $70 a barrel after an industry report revealed a big drop in crude inventories in the US since September 2008, Bloomberg reported.
Crude oil for August 2009 delivery rose as much as $0.86, or 1.2%, to $70.75 a barrel on the New York Mercantile Exchange, and was traded at $70.53 at 11.15am Singapore time. Oil fell $1.60 from eight-month high on June 30, 2009 to $69.89 a barrel, after a drop in June 2009 US consumer confidence.
Oil reversed some of yesterday’s 2.2% loss after the industry-funded American Petroleum Institute (API) said that crude supplies dropped 6.8 million barrels to 349.7 million last week. A US Energy Department report showed that the crude-oil stockpiles declined two million barrels, as per the median of 15 estimates in a Bloomberg News survey.
Oil in New York reported a 41% quarterly increase. Prices have rallied as rebounding world equity markets and a weaker dollar encouraged investors to buy the commodity as an alternative investment.
The US currency traded at $1.4029 versus the euro at 11.06am in Tokyo, following a 0.4% increase on 30 June 2009.
Brent crude oil for August 2009 settlement increased as much as 80 cents, or 1.2%, to $70.10 a barrel on London’s ICE Futures Europe exchange. It was traded at $70.07 a barrel at 11.11am Singapore time.
Gasoline for August 2009 delivery rose as much as 2.57 cents, or 1.4%, to $1.9277 a gallon. Yesterday, it dropped 3.34 cents, or 1.7%, to end the session at $1.9020 a gallon in New York. US gasoline inventories rose 209,000 barrels last week, the API said.