Hurricane Dennis forces crude futures rise

US energy department inventory data released Thursday showed that crude oil stockpiles fell by 3.6 million barrels last week.

Gasoline inventories fell by 900,000 barrels. The figures showed gasoline demand at 9.7 million barrels per day for the week reported, the largest weekly demand ever.

Gasoline production also hit its highest level ever, at 9.2 million barrels per day. Distillate inventories were up by 4 million barrels on the week.

This increase helped ease concerns about tight diesel supplies in the summer and a shortage of heating oil next winter. These figures, plus worries about what impact Hurricane Dennis would have on US oil supplies sent prices up on Friday.

Oil companies evacuated their platforms in the Gulf of Mexico as Dennis was upgraded to a category 4 storm, the next to highest severity level, as the storm was expected to reach the US Gulf Coast by the weekend.

West Texas Intermediate crude on the New York Mercantile Exchange rose 81 cents to $61.54 per barrel, while Nymex unleaded gasoline gained 4 cents to $1.8450 per gallon.

This price for gasoline equates to $77.50 per barrel, giving refiners a $16 per barrel margin. Nymex heating oil was up 1.5 cents to $1.7890 per gallon.

Meanwhile in London, Brent crude August contracts on the International Petroleum Exchange was up 88 cents to $60.16 per barrel at mid-morning, after having reached $60.36 per barrel earlier in the day. IPE gasoil futures had gained $15 to $559.25 per tonne.