Oil Prices Up After Unexpected Drop in Crude Inventories
Posted on: Thursday, 1 December 2005, 09:00 CST
Oil prices up after unexpected drop in crude inventories
NEW YORK, Nov. 30 (Xinhua) -- Crude oil prices rose on Wednesday after a US government report showed an unexpectedly large drop in crude inventories last week in the world's largest energy consumer.
US crude futures ended up 85 cents to 57.35 dollars a barrel, bouncing from a low of 55.72 dollars, while London crude was up 88 cents to 55.20 dollars a barrel.
US commercial stockpiles of crude oil fell 4.2 million barrels last week to 317.6 million barrels as imports slumped, according to the Energy Information Administration, exceeding expectations among analysts of a 100,000 barrels draw.
The drop in crude stockpiles countered a 3.4 million barrel build in distillate inventories, including heating oil.
Heating oil slipped 0.47 cent to 1.6050 dollars a gallon, while gasoline rose 1.79 cent to 1.4130 dollars a gallon.
Oil prices have eased in past weeks as mild weather pervaded in northeastern US states. The region consumes three-quarters of the nation's heating oil and is the biggest global market for that type of fuel.
Crude futures are 20 percent below their all-time high of 70.85 dollars in late August after Hurricane Katrina battered the Gulf coast.
Meanwhile, ministers of the Organization of Petroleum Exporting Countries (OPEC) appear unconcerned by the recent lower prices and have indicated the cartel will keep the taps open when it meets next month.
An Iranian official was quoted as saying on Wednesday that OPEC would even tolerate a drop toward 40 dollars a barrel.
"Because crude prices are at a suitable level, OPEC is not expected to adopt a new position at its next meeting," said Javad Yarjani, Iran's head of OPEC affairs. "Even if the oil price comes down to 40 dollars, OPEC countries will not take serious action," he added.
Source: Xinhua News Agency - CEIS
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