http://www.cnbc.com/id/22206708
Oil Tops $94 on US Crude Inventory Drop
Topics:Economy (U.S.) | Economy (Global) | Energy | Commodities
Sectors:Oil and Gas
By AP | 12 Dec 2007 | 12:36 PM ET
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Energy futures rose sharply after the government reported unexpected declines
in supplies of crude and heating oil last week and the Federal Reserve
announced a plan to help banks weather the credit crisis.
Crude supplies fell 700,000 barrels during the week ended Dec. 7, according to
a weekly inventory report from the Energy Department's Energy Information
Administration. Analysts had expected a 100,000 barrel increase.
And supplies of distillates, which include heating oil and diesel fuel, fell
800,000 barrels; analysts had expected inventories to rise by 300,000 barrels.
"Traders are concerned about that drop in distillate supplies," said Phil
Flynn, an analyst at Alaron Trading, in Chicago.
Earlier, the Fed said it was working with other central banks to try to counter
the credit crisis. That alleviated some of investors' disappointment that the
Fed on Tuesday cut interest rates by just a quarter percentage point. Many
investors had hoped for a larger half-point cut.
"Anything the Fed is doing to help out is going to support oil prices," said
Brad Samples, commodities analyst at Summit Energy Services Inc. in Louisville,
Ky.
