praveen
22-05-2008, 06:40 AM
Oil prices surged more than $3 to a record above $132 a barrel on Wednesday after a US government report showed a surprise drop in crude stockpiles, reinvigorating fears of a worsening supply crunch.
The gains bring oil up more than 30% so far this year in a rally that has raised alarm bells in in consumer countries like the US, already hard hit by a housing slump and credit crisis. “The market is in a very bullish mood and these statistics will do nothing to change that,” said Tom Bentz, analyst at BNP Paribas Commodity Futures.
At the time to print, US crude gained $2.53 to $131.51 a barrel after hitting a fresh peak of $132.08. London Brent rose $3.00 to $130.84 a barrel. The surge came after the US Energy Information Administration showed crude stockpiles in the world’s biggest energy consumer fell 5.4 million barrels last week, countering expectations for a build.
The gains bring oil up more than 30% so far this year in a rally that has raised alarm bells in in consumer countries like the US, already hard hit by a housing slump and credit crisis. “The market is in a very bullish mood and these statistics will do nothing to change that,” said Tom Bentz, analyst at BNP Paribas Commodity Futures.
At the time to print, US crude gained $2.53 to $131.51 a barrel after hitting a fresh peak of $132.08. London Brent rose $3.00 to $130.84 a barrel. The surge came after the US Energy Information Administration showed crude stockpiles in the world’s biggest energy consumer fell 5.4 million barrels last week, countering expectations for a build.