Oil prices rise despite growing US crude stockpiles on reduced spending

29-Jan-09

An inventory report showed US commercial crude oil inventories jumped 6.2 million barrels from the previous week, almost twice what was expected. Crude stockpiles in USA are building up as consumers and business reduce spending on energy. Despite this report, light, sweet crude for March delivery shot up by over one dollar to US$42.67 on the Nymex, after Monday’s US$4.15 fall on unpleasant news about housing and jobs sapping consumer confidence. In London, the March Brent contract rose to US$44.38 on the ICE Futures exchange. Many Americans are confident that an economic stimulus bill will be approved shortly. The bill includes roughly US$550 bln in spending and US$275 bln in tax cuts, and is estimated to create up to 4 million jobs.