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Oil up as US crude inventory falls

Sep 09 2011 07:46

Singapore - Crude prices rose in Asian trade on Friday, boosted by data showing a drop in US oil stocks, analysts said.

New York's main contract, West Texas Intermediate for delivery in October, gained four cents to $89.09 per barrel.

Brent North Sea crude for October delivery rose 27 cents to $114.82 in the afternoon.

US crude oil inventories fell by four million barrels last week, according to weekly data published on Thursday by the Department of Energy.

"Yesterday we had an oil inventories report showing crude oil supply in the US actually falling more than expected, and that has provided some support to prevent oil from falling further," said Victor Shum, an analyst at Purvin and Gertz energy consultancy in Singapore.

However, the drawdown was not caused by strong demand from US consumers, analysts said, attributing it instead to a temporary disruption of oil production in the Gulf of Mexico caused by Tropical Storm Lee.

Ongoing worries about the US economy are likely to cap crude prices after data released on Thursday showed new claims for jobless benefits were 414 000 last week, little changed from the previous week.

commodities  |  markets  |  oil  |  us economy



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