West TX Oil Rallies to $91.50 on U.S. Oil Stocks Drop

U.S. crude futures edged up on Thursday towards $91 a barrel and paring losses from a day earlier due to support from a U.S. government report showing a surprise drop in U.S. crude stockpiles.

NYMEX crude for November delivery was up 18 cents at $90.91 a barrel by 2324 GMT, after settling down 43 cents at $90.73 on Wednesday.   Despite the gains, the contract is still trading near a 16-month low of $90.43 hit on Sept. 11 because of ample supplies, a lackluster global economy and the strengthening of the dollar.

U.S. crude inventories fell 1.4 million barrels last week, compared with an expected increase of 700,000 barrels, U.S. government data showed. A sharp reduction in refinery runs cut gasoline stocks to their lowest in nearly two years and pared distillate supplies ahead of winter.

CNBC

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