Oil spikes after unexpected drop in US crude inventories, despite concerns of oversupply from Middle East

05-Dec-13

US benchmark WTI for January delivery spiked by over a dollar to US$97.2 on the Nymex. The spike follows an unexpected fall in US crude inventories. Department of Energy report showed US crude oil stocks fell 5.6 mln barrels to 385.8 mln barrels. Apprehensions about an oversupply from the Middle East pushed down the European benchmark Brent oil for January to US$111.8 a barrel. OPEC agreed, as widely expected, to keep its production ceiling unchanged at a Vienna meeting.