Oil prices rally after US inventory report
Friday, 18 December 2009
NEW YORK, Dec 17 (AFP): World oil prices soared Wednesday as traders reacted to falling US inventories and colder weather across the northern hemisphere, shifting the outlook for supply and demand.
New York's main futures contract, light sweet crude for January delivery, leapt 1.69 dollars to close at 72.66 dollars a barrel, after trading as high as 73.55 dollars.
Brent North Sea crude for delivery in January jumped 1.50 dollars to settle at 73.55 dollars a barrel in London trading.
The US Department of Energy (DoE) announced Wednesday that distillate stockpiles sank by a heavier-than-expected 2.9 million barrels last week in the United States, which is the world's biggest energy consuming nation.
Data for distillates, which include heating oil, are being watched closely at the start of the northern hemisphere winter, during which demand for heating fuel traditionally hits a peak.
"The fact that the distillates started to draw down and the possibility of having a bit of colder weather coming along added a bit of impetus to the crude oil market and especially that we've been to to the lower levels," said analyst Robert Montefusco at the Sucden brokerage in London.
New York's main futures contract, light sweet crude for January delivery, leapt 1.69 dollars to close at 72.66 dollars a barrel, after trading as high as 73.55 dollars.
Brent North Sea crude for delivery in January jumped 1.50 dollars to settle at 73.55 dollars a barrel in London trading.
The US Department of Energy (DoE) announced Wednesday that distillate stockpiles sank by a heavier-than-expected 2.9 million barrels last week in the United States, which is the world's biggest energy consuming nation.
Data for distillates, which include heating oil, are being watched closely at the start of the northern hemisphere winter, during which demand for heating fuel traditionally hits a peak.
"The fact that the distillates started to draw down and the possibility of having a bit of colder weather coming along added a bit of impetus to the crude oil market and especially that we've been to to the lower levels," said analyst Robert Montefusco at the Sucden brokerage in London.