Oil surges to near $103 as US stockpiles fall - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

Oil surges to near $103 as US stockpiles fall

Posted: Updated:
  • NationalMore>>

  • Crews make gains on 2 California wildfires

    Crews make gains on 2 California wildfires

    Tuesday, July 29 2014 6:38 PM EDT2014-07-29 22:38:32 GMT
    Most of the 1,200 people driven to evacuate by a Northern California wildfire that destroyed 13 homes have been told they can safely return after a series of steady gains in the firefight.
    Fire crews gained ground Tuesday on two of the largest wildfires in California, lifting evacuation orders for about half the homes in the path of a blaze in Yosemite National Park and redeploying firefighters battling...
  • 4 charged with murder in death of USC student

    4 charged with murder in death of USC student

    Tuesday, July 29 2014 6:28 PM EDT2014-07-29 22:28:35 GMT
    Four teens were charged Tuesday with murder in the fatal beating of a University of Southern California graduate student with a baseball bat and wrench as he walked to his off-campus apartment after meeting with a...
    Four teens were charged Tuesday with murder in the fatal beating of a University of Southern California graduate student with a baseball bat and wrench as he walked to his off-campus apartment after meeting with a study...
  • Jury awards Ventura $1.8M in defamation case

    Jury awards Ventura $1.8M in defamation case

    Tuesday, July 29 2014 6:21 PM EDT2014-07-29 22:21:50 GMT
    A jury awarded former Minnesota Gov. Jesse Ventura $1.8 million on Tuesday in his lawsuit against the estate of "American Sniper" author Chris Kyle.
    Former Minnesota Gov. Jesse Ventura won $1.8 million Tuesday in his two-year fight to prove he was defamed by a military sniper and best-selling author who claimed to have punched out Ventura at a bar for bad-mouthing the...
By PABLO GORONDI
Associated Press

The price of oil surged to near $103 a barrel Thursday after a U.S. inventories report showed a larger-than-expected drop in crude oil supplies.

By early afternoon in Europe, benchmark U.S. crude for August delivery was up $1.64 at $102.84 a barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, the Nymex contract added $1.24 to close at $101.20.

On Wednesday, the U.S. Energy Information Administration said U.S. crude oil inventories fell by 7.5 million barrels to 375 million barrels in the week of July 11. The fall was bigger than expected and attributed to increased refinery activity. Analysts had forecast a drop of 3 million barrels, according to a survey by Platts, the energy information arm of McGraw Hill Financial.

Last month, supply concerns caused by conflicts in Iraq jacked up the price of oil to above $107 per barrel. But the price drifted lower as Iraqi insurgents failed to advance and oil exports remained unaffected. Libya's comeback to the oil market also pushed down prices, though experts remained cautious.

"The performance of oil prices in the next few weeks is likely to be dictated above all by the development of Libyan oil supply," said a note to clients from analysts at Commerzbank in Frankfurt. "Since it will doubtless take some weeks before the oil terminals are fully operational again, the oil supply from Libya is unlikely to increase noticeably in the short term."

New sanctions announced by Washington against Russia over the conflict in Ukraine were seen giving some support to prices, though their impact wasn't expected to be immediately significant. Energy firms Novatek and Rosneft have been barred from getting long-term loans from U.S. entities.

Brent crude, a benchmark for international oils, was up 87 cents to $108.04 on the ICE Futures exchange in London.

In other Nymex trading:

- Wholesale gasoline was down 0.38 cent to $2.852 a gallon.

- Natural gas dropped 6.4 cents to $4.055 per 1,000 cubic feet.

- Heating oil rose 1.26 cents to $2.882 a gallon.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • US, Europe impose tough new sanctions on Russia

    US, Europe impose tough new sanctions on Russia

    Tuesday, July 29 2014 6:53 PM EDT2014-07-29 22:53:08 GMT
    European Union ambassadors are meeting to discuss a dramatic toughening of the trade bloc's sanctions against Russia.
    Spurred to action by the downing of the Malaysian airliner, the European Union approved dramatically tougher economic sanctions Tuesday against Russia, including an arms embargo and restrictions on state-owned banks....
  • Israel hits symbols of Hamas rule; 128 killed

    Israel hits symbols of Hamas rule; 128 killed

    Tuesday, July 29 2014 6:33 PM EDT2014-07-29 22:33:28 GMT
    Israeli aircraft, tanks and navy gunboats pounded symbols of Hamas control in Gaza City in the heaviest night of bombardment in three weeks of Israel-Hamas fighting.
    Israel unleashed its heaviest air and artillery assault of the Gaza war on Tuesday, destroying key symbols of Hamas control, shutting down the territory's only power plant and leaving at least 128 Palestinians dead on...
  • Activists want gay rights on Africa summit agenda

    Activists want gay rights on Africa summit agenda

    Tuesday, July 29 2014 5:30 PM EDT2014-07-29 21:30:08 GMT
    By DAVID CRARY AP National Writer Human rights and gay rights activists on Tuesday urged President Barack Obama to ensure that the issue of anti-gay discrimination in Africa is on the agenda at...
    By DAVID CRARY AP National Writer Human rights and gay rights activists on Tuesday urged President Barack Obama to ensure that the issue of anti-gay discrimination in Africa is on the agenda at next...