NEW YORK: US oil prices jumped yesterday following a surprising drop in US crude inventories, even as concerns about an oversupply of Middle Eastern oil pushed down the European benchmark. US benchmark West Texas Intermediate for January delivery rose $1.16 to close at $97.20 a barrel on the New York Mercantile Exchange.
But European benchmark Brent oil for January delivery lost 74 cents at $111.88 a barrel.
The increase in US oil prices came after the weekly Department of Energy report showed US crude-oil stocks fell 5.6 million barrels to 385.8 million barrels. The large drawdown in US oil stocks came on the heels of a 2.3 percent rise in US oil prices Tuesday after news that part of the Keystone pipeline will open for delivery in January. The Keystone news raised expectations that more oil would move from storage to Gulf Coast refineries.
US oil stocks rose more than 10 percent from mid-September through late November, a trend that ultimately pushed oil prices below $100 a barrel from October 21. AFP
