LONDON (SHARECAST) - A steep fall in US inventories sent crude futures 0.7% higher Wednesday while gold prices fell for a second day on signals progress is being made on US and European debt plans.
Light sweet crude for August delivery, which expired on Wednesday, climbed 64 cents to settle at $98.14 a barrel on the New York Mercantile Exchange. The September contract closed up 54 cents at $98.40 a barrel.
On the London based ICE Futures Europe exchange Brent oil for September rose $1.09 to $118.15 a barrel.
Prices rose after the Department of Energy said US oil inventories dropped more than expected in the week ended 15 July. Supplies of crude shrank 3.7m barrels last week, an indication of strong demand.
Gasoline inventories rose 800,000 barrels, while distillates, which include heating oil and diesel, rose 3.4m barrels.
Gold futures eased for a second day as demand for safe haven asset waned amid signs progress had been made in agreeing to raise the US debt ceiling. Equally in Europe there were signals that leaders were coming closer to agreeing a new Greece debt deal.
Gold for August delivery fell $4.20 to settle at $1,596.90 an ounce on the Comex division of the New York Mercantile Exchange.
Copper for September delivery dropped 3 cents to $4.44 a pound while September palladium lost $4.65 to $793.65 an ounce.
