Crude-oil futures reversed course Wednesday, extending gains after a weekly government report showed a higher-than-expected drop in inventories.
Oil for October delivery , the new front-month contract, rose 10 cents, or 0.1%, to $96.95 U.S. a barrel on the New York Mercantile Exchange, hovering at the highest prices since May.
The reversal came as the Energy Information Administration data showed a decline of 5.4 million barrels for crude inventories, a drop similar to what a trade group had reported late Tuesday.
Analysts polled by Platts had expected the EIA to show a decline in crude suplies by two million barrels.
The EIA also reported gasoline inventories down one million barrels, and supplies of distillates up one million barrels. The analysts surveyed by Platts had seen gasoline stockpiles down 1.25 million barrels, while distillates inventories came in as expected.
Heating oil, a distillate, for September delivery kept losses, off less than one cent to $3.12 U.S. a gallon.
September gasoline added to modest gains, up one cent to $3.08 U.S. a gallon.
Crude oil had already trimmed losses after the National Association of Realtors reported a climb in sales of existing homes and an increase in prices. The data were in line with expectations.
Natural gas for September delivery rose seven cents, or 2.5%, at $2.84 U.S. per million British thermal units. The EIA is expected to report on natural-gas inventories on Thursday.
Related Stories
