Oil Rises After Report Shows Stockpile Drop

6 October 2009 (Last Updated October 6th, 2009 18:30)

Oil rose for a third consecutive day in New York after a report showed a drop in fuel and crude stockpiles in the US. Crude oil for November 2009 delivery rose as much as 64¢, or 0.9%, to $71.52 a barrel in electronic trading on the New York Mercantile Exchange, Bloomberg reports.

Oil rose for a third consecutive day in New York after a report showed a drop in fuel and crude stockpiles in the US.

Crude oil for November 2009 delivery rose as much as 64¢, or 0.9%, to $71.52 a barrel in electronic trading on the New York Mercantile Exchange, Bloomberg reports.

It was at $71.50 at 12.05pm Singapore time. On 7 October, the contract gained 47¢ to settle at $70.88.

The price rose following news from the American Petroleum Institute that distillate fuel inventories dropped 2.91 million barrels in the previous week while crude supplies fell by 254,000 barrels, Bloomberg reports.

The dollar index, which compares the US currency to a basket of six major currencies, has dropped to 76.42 from 78.01 a month ago, encouraging investors to purchase commodities as an inflation hedge.