LONDON, Sept 6: The price of New York oil soared above $77 on Thursday, within reach of a new record high, as traders anticipated correctly that US crude reserves fell more heavily than expected last week.
Shortly before publication of the US energy inventories report, New York’s main futures contract, light sweet crude for delivery in October, surged to $77.43 per barrel.
That was not far off the record high of $78.77 which was hit on August 1. The contract later stood at $76.68, up by 95 cents from Wednesday’s close.In London on Thursday, the price of Brent North Sea crude for October delivery surged 81 cents to $75.15 per barrel, after earlier hitting $75.70, which was last seen on August 3.
The US Energy Information Administration revealed Thursday that American crude reserves tumbled by 3.9 million barrels in the week ending August 31.
That was far heavier than analysts’ consensus forecasts of a drop of 2.2 million barrels.
American gasoline inventories, meanwhile, sank by 1.5 million barrels.
“We’re still seeing US crude stocks draw,” said Global Insight analyst Simon Wardell.
He added that the data was “on the bullish side if anything.”
The weekly US report -- published one day later than normal due to Monday’s public holiday in the United States -- has stoked market jitters about the strength of global energy supplies going forward.—AFP
