Do More With Reuters
Partner Services

Oil jumps as U.S. stockpiles fall near 3-year low

Thu Dec 20, 2007 2:20am IST
 
Email | Print | | Single Page
[-] Text [+]

By Richard Valdmanis

NEW YORK (Reuters) - Oil prices rallied on Wednesday as a slump in U.S. crude oil stockpiles to their lowest level in nearly three years rekindled worries of a winter supply crunch.

U.S. crude settled up $1.16 at $91.24 a barrel. London Brent rose $1.36 to $91.48.

The U.S. Energy Information Administration reported that crude stockpiles in the world's largest energy consumer dropped 7.6 million barrels last week to 296.9 million, the lowest since February 2005.

Experts attributed the slump in stockpiles to a slowdown in imports after fog interrupted shipping along the U.S. Gulf Coast and a deadly ice storm in the U.S. heartland temporarily shut down major crude oil pipelines.

"Of the unexpectedly large drop in crude oil stocks this week, 5.8 million barrels came out of the Gulf Coast. That means the majority can be attributed to fog in the Houston Ship Channel last week," said Tim Evans, energy analyst at CitiGroup Futures Research in New York.

U.S. crude stocks have fallen about 16 percent since late June, and are about 9 percent below a year ago, pressured in part by tight-fisted OPEC output policy, according to the EIA.

Inventory levels have tightened just as a cold snap in the U.S. Northeast has bolstered fuel demand in the region, home to about 80 percent of the nation's heating oil consumption.

Crude prices rose close to $100 a barrel last month as oil traders fretted that inventories were becoming dangerously low heading into the peak of the winter.   Continued...

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
Economy seen growing at 7.2 pct in FY10 - govt

The forecast reinforces the possibility that the government may start to unwind its fiscal stimulus in the budget.  Full Article 

A Greek flag at the Bank of Greece is seen near a statue of ancient philosopher Socrates in Athens February 5, 2010.  REUTERS/Yiorgos Karahalis/Files
Greek crisis sets euro zone enlargement back

The Greek debt crisis has dealt a setback to prospects of enlarging the euro zone by highlighting the difficulties of managing the single currency area.  Full Article 

Photo

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives
Greece's Finance Minister Papaconstantinou addresses reporters during a news conference in Athens, January 20, 2010.
Eurozone agreed in principle to aid Greece

Euro zone countries have decided in principle to help debt-stricken Greece, a senior German ruling coalition source said.  Full Article 

FROM THE MARKETS

After the Bell
After the Bell

Reuters Money's Kshitij Anand updates you on the movers and shakers of the Indian stock market.  Blog 

SHOWCASE

"Claw Back" Pay
"Claw Back" Pay

Banks and regulators hope that threats to "claw back" pay if trades later blow up will rein in risk taking on Wall Street.  Full Article 

 
James Saft
Blaming Asperger's

COLUMN - Did Asperger's help cause the financial crisis?  Full Article 

 
Going Global
Going Global

With Volvo, Chinese eye M&A abroad to win at home.  Full Article 

 
Delivery Woes
Delivery Woes

Boeing 787 delivery schedule could slip - experts.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage