Unexpected fall in US petrol inventories trigger oil price surge

26-Apr-13

Oil on the Nymex have soared by over two dollars to $US91.4 a barrel, the highest level since April 11. In London, Brent crude for June delivery rose to $US101.7 a barrel. Oil prices have surged following an unexpected fall in US petrol inventories and speculation that the glut of crude at the Cushing, Oklahoma hub could soon ease, amid speculation of a reduction in interest rates by the European Central Bank soon. Weekly data from the US Energy Information Administration showed that inventories at Cushing rose by only 35,000 barrels last week. Additional support came from a steep 3.9-million-barrel drop in gasoline inventories last week as refinery output unexpectedly dipped, as per Reuters. This could have been triggered by a number of refinery problems on the Gulf Coast. US refinery utilisation fell to 83.5% compared with 86.3% in the prior week.