Crude oil rose for a second day in New York on optimism the economic recovery is accelerating and as the dollar dropped to the lowest level against the euro in more than a year, bolstering investor demand for commodities.
Futures topped $110 U.S. a barrel after stocks advanced on Intel Corp.’s forecast for higher sales and company results in Europe and Asia beat estimates. The U.S. currency’s drop sent gold to a record and silver to a 31-year high. Oil extended gains after the Energy Department reported an unexpected decline in U.S. crude supplies.
Crude oil for June delivery climbed $2.26 U.S., or 2.1%, to $110.54 U.S. a barrel Wednesday morning on the New York Mercantile Exchange. The May contract expired yesterday at $108.15. Prices are up 32% from a year ago.
Brent crude oil for June settlement rose $1.30 U.S., or 1.1%, to $122.63 U.S. a barrel on the London-based ICE Futures Europe exchange.
Supplies of crude oil fell 2.32 million barrels to 357 million last week, the first drop since February, the Energy Department said today in a weekly report. Inventories were forecast to increase by 1.3 million barrels, according to the median of 13 analyst estimates in a Bloomberg News survey.
Gasoline inventories dropped 1.58 million barrels to 208.1 million, the lowest level since the week ended Nov. 12, the report showed. Stockpiles were forecast to decline by 1.75 million barrels, according to the survey.
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