Friday, October 26, 2007

Energy Futures Jump After the Government Reports Surprise Drop in Crude, Gasoline Supplies

Oil Prices Surge on Inventory Report
Wednesday October 24, 6:08 pm ET
By John Wilen, AP Business Writer

NEW YORK (AP) -- Oil futures surged Wednesday after the government's latest inventory report revealed large and unexpected declines in crude and gasoline inventories.

Crude supplies fell last week by 5.3 million barrels, the Energy Department's Energy Information Administration said. Analysts surveyed by Dow Jones Newswires, on average, had been expecting supplies to increase by 300,000 barrels.

"We haven't missed like this in a long time," said James Cordier, president of Liberty Treading Group in Tampa, Fla.

Analysts said the decline was particularly surprising because refineries are shutting down for seasonal maintenance, processing less crude. Refinery activity fell during the week ended Oct. 19 by 0.2 percentage point to 87.1 percent of capacity. Analysts had expected an increase of 0.3 percentage point...   Full article >>

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