Newspaper article THE JOURNAL RECORD

Crude Oil Rises

Newspaper article THE JOURNAL RECORD

Crude Oil Rises

Article excerpt

NEW YORK (AP) -- Crude oil futures jumped more than 4 percent Wednesday, surpassing the $30-a-barrel level on the New York Mercantile Exchange after inventory reports showed crude stocks at a 24-year low.

Weekly reports on oil storage were mixed. The American Petroleum Institute reported late Tuesday that crude oil stocks dropped by 2.1 million barrels. Before trading opened Wednesday, the Department of Energy reported a slight gain in crude oil stocks.

Still, both reports fell short of analysts' expectations of a more than 3-million-barrel increase.

Prices surged Wednesday on the news, as analysts said the market had been wrongly anticipating a significant build in supply after an influx in oil from OPEC and Saudi Arabia.

"The market is at dangerously low stock levels right now," said Phil Flynn, vice president and senior market analyst at Alaron Trading. "Traders are getting drawn into the reality that we're heading toward the winter season with some of the lowest oil supplies we've ever had. …

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