NEW YORK (Dow Jones) – Crude oil surpassed $ 90 a barrel in electronic trading Tuesday after an industry group reported a big draw in crude stocks last week.
Light, sweet crude for February delivery rose 69 cents, or 0.8%, to $ 90.06 in electronic trading, rallied for a settlement price of $ 89.82 per barrel, up 45 cents, or 0 , 5%, on the New York Mercantile Exchange. That marked the highest settlement since October 2008.
The American Petroleum Institute said Tuesday the U.S. 5.8 million barrels of oil deposited during the week ended Dec. 17. Gasoline inventories fell 2.9 million barrels, while distillate stocks, including heating oil and diesel, were flat, the API said.
Traders are still waiting for the more closely inventory report from the U.S. Department of Energy, due Wednesday at 10:30 am EST. The DOE is expected to report inventories fell 2.3 million barrels last week, according to analysts polled by Dow Jones Newswires. Gasoline stocks are seen rising 900,000 barrels, while distillates inventories, which include heating oil and diesel, are expected to fall by 600,000 barrels.
Inventories remain well above the average level, although the recent falls, if they continue, will likely more expensive raw support in 2011.
Oil futures Tuesday largely parallel with the stock markets and other external cues. The Standard & Poor’s 500 index rose 0.5% in 1254 in the afternoon trade, boosted by hopes of deal-making behind Canada’s Toronto-Dominion Bank agreed to buy Chrysler Financial for $ 6.3 billion.
“The market is still supportive of positive economic sentiment,” said Tom Bentz, oil analyst at BNP Paribas. He added that “the market is still in the same numbers that we have two weeks.”
Oil also finished higher. Front-month January reformulated gasoline or RBOB Blend Stock, ended 2.07 cents, or 0.9%, to $ 2.3985 a gallon. January heating oil advanced 2.69 cents, or 1.1%, to $ 2.5164 a gallon.
Crude trading was volatile as light volume helped increase the impact of smaller transactions. Many traders remain hesitant to place big bets before the Christmas and New Year holidays, and oil prices have traded within a tight range of between $ 88 and $ 90 for a large part of December.
“You’ve got some people on the sidelines after they close their books for years,” said Gene McGillian, analyst at Tradition Energy in Stamford, Conn.
Still a steady drumbeat of data indicate an improving U.S. economy remains supportive for crude prices. Several reports later this week will shed more light on the health of the U.S. economy. Data for the fourth quarter gross domestic product is due Wednesday, while a report in December durable goods orders is scheduled for release on Thursday.
More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headings:
Nymex Light Crude Oil Close
Close Nymex Harbor RBOB gasoline
Close Nymex Heating Oil Fund
ICE Brent Crude Oil Close
ICE Gas Oil Close
source:onlinewsj
Tony Hayward out as BP CEO, U.S. official says; shift removes a source of blunders, but not the oil
NEW ORLEANS - It seems that Tony Hayward will eventually recover after all his life. . . Read more »
MCX Gold prices fall on profit booking
AHMEDABAD - MCX Gold December contract prices eased on Wednesday after gaining force for two consecutive days as the U. . . Read more »