9/29/2010 - Heating Oil Rises - Inventories Above 5 YR Average
Oil prices rose Wednesday after the government reported inventories fell last week, though supplies remained well above the five-year average.
Benchmark crude for November delivery gained $1.20 to settle at $77.86 a barrel on the New York Mercantile Exchange.
Meanwhile, the national average for a
The
Inventories of distillate fuel, which include
"The face value of the report looks price supportive. However, even after these draws, we still
have huge supply surpluses anywhere you look," said oil analyst Jim Rittersbusch, president of
The oil market has remained stable, with September prices ranging between $73 a barrel and $78 a barrel. It's a trend analysts expect to continue as traders wait for signs of an improving economy and stronger demand that would tap into supplies.
Traders have been watching stock markets for clues about the recovery in the months ahead. The Dow Jones Industrial Average closed down about 23 points. The S&P 500 and the NASDAQ were also slightly lower. Worries about Europe resurfaced following protests in Brussels, Spain and Ireland over austerity measures aimed at preventing another fiscal crisis.
In other Nymex trading in October contracts, heating oil rose 6.60 cents to settle at $2.1905 a gallon and gasoline gained 4.76 cents to settle at $1.9765 a gallon. Analysts expect both contracts to be active since they expire Thursday. Natural gas for November delivery added 1.1 cents to settle at $3.962 per 1,000 cubic feet.
In London, Brent crude rose $2.06 to settle at $80.77 a barrel on the
Associated Press writers Pablo Gorondi and Alex Kennedy in Singapore contributed to this report.