Oil ends at 8-week high on gasoline inventory drop
Posted on 10 March 2010 by admin
Oil prices settled at an eight-week high on Wednesday in choppy trading after a government report showed that gasoline stocks in the United States dropped unexpectedly.
U.S. crude for April delivery settled 60 cents higher at $82.09 per barrel, after reaching $83.03.
London ICE Brent for April settled at $80.48, up 57 cents.
“Today’s EIA data certainly has a bullish undertone with both gasoline and distillates off much more than expected,” said Chris Jarvis, senior analyst, Caprock Risk Management, Hampton Falls, New Hampshire.
“Given the fact that we are heading into the driving season, a drop in gasoline supplies will drive bullish sentiment. Couple that with the dollar starting to weaken again and equities rallying and we wouldn’t be surprised to see crude oil break out of this $80 level and march towards the $90 level in the coming months.”
