Oil rises a third day as stockpiles drop
Wednesday November 18 2009
Oil advanced for a third day in New York, rising above $80 a barrel after an industry report showed crude stockpiles declined in the US, the largest energy consumer.
The American Petroleum Institute said yesterday crude inventories fell by 4.37 million barrels last week to 333.1 million barrels.
The US Energy Department releases its weekly supply report today in Washington. Analysts expect it to say overall fuel supplies fell. Imports and output were disrupted last week as Hurricane Ida passed through the Gulf of Mexico.
“Oil prices are moving on surprisingly bullish data showing a higher-than-expected draw on crude stocks, indicating that demand is improving,” said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo. “It’s probably explained by Ida, which caused refineries and transportation to be shut down.”
Crude oil for December delivery rose as much as 89 cents, or 1.1pc, to $80.03 a barrel in electronic trading on the New York Mercantile Exchange and traded at $79.97 at 10:11 am London time. Yesterday, the contract rose 24 cents to settle at $79.14. Futures have gained 79pc this year.
Prices have gained this week after a more-than-forecast jump in U.S. retail sales increased optimism that prospects for the global economy were improving. U.S. stock markets gained for a third day yesterday. Asian equity climbed as well.
“We’re seeing the rally in crude, the rally in equities and the rally in gold all highly correlated over the past six months,” said Alan Plaugmann, head of futures at Saxo Bank in a Bloomberg Television interview.
- Christian Schmollinger and Ayesha Daya
© Bloomberg
