Crude Oil Tops $70 After Unexpected Drop in Gasoline Supplies

Is oil about to make back some of its recent losses? Other than the news about gasoline supplies, nothing else suggests an increased demand for oil is imminent.

Crude oil futures topped $70 a barrel and gasoline surged after a U.S. government report showed an unexpected decline in supplies of the motor fuel.

Gasoline inventories fell 1.66 million barrels to 211.5 million in the week ended Sept. 25, the Energy Department said today in a weekly report. Stockpiles were forecast to increase by 1 million barrels, according to the median of analyst estimates in a Bloomberg News survey.

“Gasoline had been pummeled in the past few weeks, price- wise,” said Antoine Halff, head of energy research at Newedge USA LLC in New York. “This provides some price relief, and gasoline is pulling crude higher. Gasoline seems to be the driver today.”

Bloomberg

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