Crude oil up on reduced inventories

Crude oil prices were up during the day on Wednesday after the weekly report on US inventories from the Department of Energy’s Energy Information Administration showed that crude stockpiles were down 1.3 million barrels in the week ending March 17, to 338.6 million barrels.  Analysts had forecast an increase of 2.5 million barrels on the week.  Despite the drop, US inventories are still around their highest level in three years.

May delivery Brent crude on the International Petroleum Exchange in London was up 44 cents to $62.57 pr barrel in late afternoon, while West Texas Intermediate crude for May delivery had gained 31 cents by early afternoon on the New York Mercantile Exchange to trade at $62.65 per barrel.