LONDON (SHARECAST) - A bigger than expected fall in US inventories of oil and gasoline lit a fire under the oil price after a somnolent morning session on the futures market.
The Energy Information Administration (EIA) said that stockpiles of crude oil fell by 1.9m barrels in the week ended 28 May, virtually double the decline industry analysts had been predicting.
Total motor gasoline supplies dipped 2.6m barrels, versus expectations of a 0.75m decline, but distillates inventories rose by 0.5m barrels. Analysts had tipped distillates supplies to climb by 0.95m barrels.
Crude for July delivery advanced $1.75 to $74.61 a barrel on the Comex division of the New York Mercantile Exchange, its highest level since the middle of last month.
The August contract rose $1.55 to $76.05 a barrel.
Gold was spurned for the second day in succession as investors rediscovered their appetite for riskier investments.
Gold for August delivery tumbled $12.60 to $1,210 an ounce in New York.
Copper was also on the slide, with the most actively traded contract (July) dipping below $3 a pound for the first time since 20 May, as it fell 9 cents to $2.94 a pound.
