Supplies come in within expectations; gasoline gains
By Nick Godt, MarketWatch
SAN FRANCISCO (MarketWatch) — Oil futures rallied to a six-month high Wednesday, extending their run after a government report showed no surprises on the inventories front and the day’s round of macro-economic data painted a brighter picture of the U.S. economy.
Oil’s gains came despite a firmer dollar, as investors awaited the end of the Federal Reserve’s two-day meeting and the announcement of further easing measures.
Crude oil for December delivery (CLZ10 84.29, +0.39, +0.47%) rose 83 cents, or 1%, to $84.72 a barrel. A close around these levels would be oil’s highest since May 3.
Oil extended gains after the Energy Department’s Energy Information Administration reported a rise of 2 million barrels in the nation’s crude-oil inventories in the week ended Oct. 29, within analyst expectations.
The EIA report showed gasoline stocks declining 2.7 million, and supplies of distillates, which include diesel and heating oil, declined 3.6 million.
Analysts polled by Platts forecast an increase of 1.1 million barrels in gasoline supplies and a decline of 900,000 for distillates inventories.
While declines in supplies of oil products were supportive, the increase in crude stocks was “particularly bearish compared to a 3.9 (million barrel) draw in the same week last year,” Citi Futures Perspective analyst Tim Evans said in emailed comments.
December gasoline (RBZ10 2.12, +0.03, +1.47%) rose less than a penny, or 0.1%, to $2.11 a gallon. December heating oil (HOZ10 2.32, +0.02, +0.94%) added one cent, or 0.3%, to $2.30 a gallon.
Oil had received an extra lift after the Institute of Supply Management’s index showed the services sector expanding more than expected in October.
Factory orders also rose above expectations.
Earlier Wednesday, payroll-processor ADP said the U.S. economy added 43,000 private-sector jobs in October. The Labor Department will report the monthly tally of overall U.S. employment on Friday. Read more on ADP’s jobs report.
