Oil jumps as crude supplies fall

Government reports 6 million barrel drop, prices race towards $75.

By Steve Hargreaves, CNNMoney.com staff writer July 12 2006: 10:37 AM EDT

NEW YORK (CNNMoney.com) -- Oil prices rose Wednesday after the government said supplies of crude oil were far below estimates.

U.S. light crude for August delivery gained 64 cents to $74.80 a barrel on the New York Mercantile Exchange. Crude was up 9 cents just prior to the report's release.

The Energy Information Administration, in its weekly stockpile report, said crude supplies fell by 6 million barrels. Analysts were looking for a 1.2 million barrel decline, according to Reuters.
Gasoline supplies fell by 400,000 barrels, while distillates, used to make heating and diesel fuel, rose by 2.6 million barrels. Analysts were looking for a 100,000 barrel drop in gasoline stocks and a 1.6 million barrel build in distillates.