Crude Oil Gains as Stockpiles Fall

18 August 2009 (Last Updated August 18th, 2009 18:30)

The price of crude oil rose for a second day as an industry-funded report showed a decline in inventories in the US, Bloomberg reported. Crude oil for September 2009 delivery increased as much as $1.31, or 1.9%, to $70.50 a barrel on the New York Mercantile Exchange. It t

The price of crude oil rose for a second day as an industry-funded report showed a decline in inventories in the US, Bloomberg reported.

Crude oil for September 2009 delivery increased as much as $1.31, or 1.9%, to $70.50 a barrel on the New York Mercantile Exchange.

It traded at $69.99 at 12.17pm Singapore time. On 18 August it increased $2.44, or 3.7%, to settle at $69.19.

On 18 August oil extended its 5.3% surge after the American Petroleum Institute (API) reported that crude stockpiles declined an unexpected 6.13 million barrels last week. Asian stocks increased on 19 August, led by automakers and miners.

The September 2009 contract expires on 20 August. The more active October 2009 future gained $0.57, or 0.8%, to $71.66 a barrel at 12.18pm Singapore time.

The US crude inventories fell to 342.4 million barrels and gasoline supplies declined 847,000 barrels to 212.6 million, the API report showed. The Energy Department will release its weekly report on 19 August. The report is predicted to reveal a rise in stockpiles for a fourth week, according to a survey of analysts.

Oil traded in a range of $3.50 in the past week with a high of $72.21 a barrel and a low of $68.71 a barrel. Oil has reached an intraday low of $65.23 in this week before moving back to more than $70 a barrel.

Brent crude oil for October 2009 settlement increased as much as $1.14, or 1.6%, to $73.51 a barrel on London’s ICE Futures Europe Exchange. It was traded at $72.67 at 11.59am Singapore time. The contract increased $1.83, or 2.6%, on 18 August, to end the session at $72.37 a barrel.