Oil jumps nearly 5% on unexpected big supply drop

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Oil jumps nearly 5% on unexpected big supply drop

Source: Xinhua
[15:41 August 20 2009]
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Oil prices ended up nearly 5 percent on Wednesday as government report showed US crude inventories dropped sharply.

Oil prices rose immediately after the US Energy Department's Energy Information Administration (EIA) said that crude stockpiles plunged by 8.4 million barrels in the week ending Aug. 14, beating analysts' prediction for a build.

Meanwhile, according to the latest report, gasoline inventories dropped by 2.1 million barrels, also larger than expected.

Further support came as Wall Street moved to positive territory after the release of the inventory data and the dollar continued its falling trend against the euro.

Light, sweet crude for September delivery rose $3.23, or 4.7 percent, to settle at $72.42 a barrel on the New York Mercantile Exchange.

In London, Brent Crude for October delivery added 2.06 dollars to $74.43 a barrel on the ICE Futures exchange.