Crude-oil futures rose Thursday after government data showed U.S. crude inventories fell last week for a third straight week as the nation imported less oil and as demand for gasoline picked up. Crude inventories declined by 5.4 million barrels in the week ended May 22, the Energy Information Administration reported. Analysts surveyed by energy-information provider Platts had expected an increase of 1.8 million barrels. Meanwhile, gasoline production averaged nearly 9.4 million barrels per day last week, up from 8.7 million barrels a week ago, indicating demand for gasoline has been on the rise. The EIA also said gasoline inventories fell by 600,000 barrels last week. After the data, crude for July delivery rose $1.14, or 1.8%, to $64.59 a barrel on the New York Mercantile Exchange. Oil had been on the rise in the previous three sessions. It ended Wednesday's trading at the highest level since Nov. 5. "We should expect crude stocks to decline further although inventories levels are still above normal," said James Williams, an economist at energy research firm WTRG Economics. "The gasoline refinery numbers are encouraging." U.S. refineries operated at 85.1% of their operable capacity last week, up sharply from 81.8% a week ago. The EIA also reported that distillate stockpiles, which include heating oil and diesel, rose 300,000 barrels last week. Crude inventories at Cushing, Okla., the delivery point for Nymex oil futures, rose 1.1 million barrels to 30.7 million barrels. The American Petroleum Institute, an industry group, reported after the close of trading Wednesday that crude inventories fell by 2.8 million barrels. The EIA and the API use different criteria for gauging inventory levels. Rounding out the trading in energy futures, June-reformulated gasoline rose 0.2% to $1.8955 a gallon, while June heating oil gained 2% to $1.5927 a gallon. Natural gas for July delivery rose jumped 7% to $3.888 per million British thermal units. U.S. natural gas inventories rose 106 billion cubic feet in the week ended May 22, the EIA reported Thursday. Analysts surveyed by Platts had expected an increase between 108 billion cubic feet and 113 billion cubic feet. In oil exchange-traded funds, the United States Oil Fund ) gained 2.3% to $35.39. In energy equities, the Amex Oil Index ) rose 2.3% to 962. Economic data Also pushing oil prices higher Thursday, a pair of U.S. government reports showed the number of new layoffs declined last week and durable-goods orders rose more than predicted last month. The number of new layoffs declined by 13,000 to 623,000 last week, while the number of people collecting state unemployment benefits rose by 110,000 to a record 6.79 million, the Labor Department reported. Meanwhile, orders for U.S.-made durable goods jumped in April, rising 1.9%. Also in economic news, U.S. sales of new homes were nearly unchanged in April, the Commerce Department reported Thursday, adding to a sense that sales appear to have hit a bottom earlier this year. See full story. OPEC keeps steady The Organization of Petroleum Exporting Countries decided to keep production quotas unchanged, in line with expectations. OPEC, which accounts for about one-third of the world's oil production, decided to leave production levels unchanged at Thursday's meeting in Vienna. "The Conference noted that the crude volumes entering the market are still in excess of actual demand and that, although crude inventories have fallen over the preceding two months, stocks remain high," the cartel said in a statement released after the meeting. The group had cut its production by 4.2 million barrels a day in several steps since September. The compliance rate rose to 83% in March, a surprise to industry analysts given OPEC's poor historical record. But as oil prices rose in recent months, some OPEC members increased their production. The cartel's output rose in April for the first month in eight, according to the International Energy Agency and a survey by energy-information provider Platts.

Source