By Claudia Assis, MarketWatch SAN FRANCISCO (MarketWatch) — Crude-oil futures rose Thursday as a weekly government supply report showed a larger-than-expected decline in inventories and as investors held hope the U.S. Federal Reserve is readying steps to help the economy. Oil for October delivery CL1V +0.58% rose 49 cents, or 0.6%, to $89.82 a barrel on the New York Mercantile Exchange. Futures had veered between small gains and losses earlier, but got a boost after the Energy Information Administration reported a decline of 4 million barrels in oil inventories for the week ended Sept. 2. That contrasted with expectations of a decline of around 1.7 million barrels, according to analysts polled by Platts. The EIA reported gasoline supplies up 200,000 barrels, versus expectations of a draw of 900,000 barrels. Distillates inventories rose 700,000, in line with expectations of an increase of 600,000 barrels. October gasoline RB1V -0.03% was flat at $2.90 a gallon. Heating oil for October delivery HO1V -0.28% declined less than a penny to $3.07 a gallon. Fed chief Ben Bernanke is scheduled to speak at 1:30 p.m. Eastern. Investors weighed whether he’d take the opportunity to set out what the central bank can do to revive the economy ahead of a two-day policy meeting starting Sept. 20. Earlier Thursday, the European Central Bank kept its key lending rate unchanged, as expected, and its president, Jean-Claude Trichet, lowered the euro zone’s growth forecast. First-time jobless claims rose slightly to 414,000 last week, the U.S. government reported, above analysts’ expectations. Meanwhile, natural gas for October delivery NG11V +0.96% added 5 cents, or 0.1%, to $3.95 per million British thermal units. The Energy Information Administration reported that natural gas supplies rose by 64 billion cubic feet the week ended Sept. 2. Analysts polled by Platts expected the report to show a net increase between 58 billion and 62 billion cubic feet.

Source