Oil rose the most in six weeks in New York after the U.S. government reported that supplies dropped almost three times as much as expected.
Crude advanced as much as 3.2% as the Energy Department said inventories fell for a fourth week, the longest stretch of declines this year. Imports decreased after the International Energy Agency’s June 23 announcement that its members will release 60 million barrels of oil from strategic reserves, including 30 million barrels from the U.S.
Crude for August delivery rose $2.75, or 3%, to $95.64 U.S. a barrel on the New York Mercantile Exchange, recouping all the declines since last week’s IEA announcement. Prices have risen 26% in the past year.
Brent oil for August settlement on the London-based ICE Futures Europe exchange gained $3.03, or 2.8%, to $111.81 U.S. a barrel.
Crude inventories declined 4.38 million barrels, or 1.2%, to 359.5 million barrels in the week ended June 24, more than the 1.5 million median forecast of analysts. Imports fell 271,000 barrels a day, or 3%, to 8.88 million, the first drop in three weeks.
The industry-funded American Petroleum Institute said yesterday in a separate report that crude stockpiles slipped 2.7 million barrels to 360.3 million, a 10-week low.
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