Crude higher on inventories, production cuts

Crude oil prices were higher in London and New York on Thursday after Total (Euronext: FP; NSYE: TOT) declared force majure after it had to cut exports from one of its oil fields in Angola due to mechanical difficulties, and after US inventories figures released Wednesday showed gasoline inventories down much more than had been anticipated.

The supply disruption in Angola was not large, 50 percent of just 240,000 barrels per day, but analysts pointed out that it was the latest in a string of problems affecting the price of oil.

Angola is new newest member of the Organization of Petroleum Exporting Countries.

US demand for gasoline was at its second highest ever in the data, averaging 9.71 million barrels per day, and even with refinery usage going up the decline in stockpiles was significant.

At late afternoon in London, September contracts for Brent crude were 29 cents higher to $77.05 per barrel on the Intercontinental Exchange, while early afternoon trade on the New York Mercantile Exchange found West Texas Intermediate crude for August delivery 30 cents higher at $75.35 per barrel.

Futures prices for gasoline and heating oil were lower in New York, however, with Nymex August gasoline down 2 cents to $2.18 per gallon and September heating oil a cent lower to $2.12 per gallon.

Nymex September natural gas was up 9 cents to $6.70 per million British thermal units.