Oil rises on sharp supply drawdown
Gasoline and distillate stockpiles fall by over 3 million barrels each, but crude stocks gain despite OPEC cut.
NEW YORK (CNNMoney.com) -- Oil prices rose Wednesday after the government said supplies of crude oil rose but reported a big drawdown in gasoline and distillate stocks.
U.S. light crude for December delivery gained 67 cents to 58.95 a barrel on the New York Mercantile Exchange. Oil had traded 42 cents higher just prior to the report's release.
In its weekly inventory report, the Energy Information Administration said crude stocks rose by 1.3 million barrels last week. Analysts were looking for a gain of 300,000 barrels, according to Reuters.
Distillates, used to make heating oil and diesel fuel, fell by 3.6 million barrels while gasoline supplies dwindled by 3.7 million barrels. Analysts were looking for a 400,000 barrel drop in distillates supplies and a 100,000 decline in gasoline stockpiles.
Oil prices have fallen more than 20 percent from a trading high of $78.40 reached in July.
[Note: After OPEC agreed to cutback 1.2 million barrels of crude per day, North America Oil companies are following the same suit to help maintain the 60.00 dollar per barrel pricing. However, this is risky buisness since it still killing the world ecomony. Suggestion to those companies, the correct pricing should be around 45.00 dollar per barrel. Forget the greed or quick profits and start thinking about the individual. In the end, this will only bring us closer to rid of the current monoply in using gasoline.]
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