Crude Oil Gains on Inventories Data

Crude oil futures gained 2 percent on Wednesday as investors got optimistic for the crude oil on the news of reduced US inventories surpassing all expectations.

According to the latest report of Energy Information Administration crude oil inventories decreased by 4.4 million barrels for the week ended June 24th, 2011 as compared to expected decline of 1.7 million barrels. Gasoline inventories also dropped to 1.4 million barrels for the week ended June 24th while analysts expected the increase of 700,000 barrels.

Distillates inventories which include heating oil and diesel were up by 300,000 barrels while analysts hoped for an increase of 1.8 million barrels.

Bill O’ Neill from Logic Advisors in New Jersey commented, “The weekly (Department of Energy’s inventory figures) had a clear bullish slant,” he further added, The market was also off to a good start” on anticipation surrounding the Greek vote and other factors such as Tropical Storm Arlene brewing in the Gulf of Mexico.”

Crude oil futures contract for August delivery surged 2 percent or $1.88 to $94.77 per barrel on New York Mercantile Exchange. London’s Brent crude oil futures contract for August delivery also gained 3.3 percent or $112.40 per barrel at ICE Futures exchange.

Gasoline futures contract for August delivery also gained 4.2 percent or $0.12 to $2.93 per gallon. Heating oil futures contract for August delivery also soared 3.3 percent or $0.09 to $2.93 per gallon.

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