Oil surges on unexpected inventories drop
Crude prices surged on Wednesday as U.S. crude inventories dropped unexpectedly last week and Greece passed new austerity plan, Xinhua reported.
The U.S. Energy Information Administration said on Wednesday, U. S. crude inventories fell 4.4 million barrels to 359.5 million in the week ended June 24, much more than forecast, as oil imports slowed and refineries increased inputs. This was the fourth straight weekly loss, pushing crude stocks to the lowest level since April. Gasoline stockpiles also declined 1.4 million barrels, missing the estimates of a small increase.
Crude investors were encouraged by the result that Greek parliament passed the new five-year austerity program. Parliament' s approval made it possible for Greece to receive aid from EU and IMF so as to avoid a debt default. The euro rallied about 0.5 percent against the dollar. The dollar index, in contrast, fell 0. 5 percent. Weaker dollar also lifted oil.
Light, sweet crude for August delivery rose 2.28 dollars, or 2. 52 percent to settle at 92.89 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for August delivery also gained 3.59 dollars, or 3.30 percent to close at 112.37 dollars a barrel.