Crude inventories down by 3.5 million barrels

Crude oil prices were higher on Wednesday after the US Energy Information Administration reported that inventories dropped 3.5 million barrels last week to 333.6 million barrels in the face of forecasts that stockpiles would only decline by around 800,000 barrels.

Most of the declines were attributed to lost production due to Hurricane Dean.

Gasoline inventories were also much lower than had been anticipated, dropping 3.6 million barrels to 192.6 million barrels on a forecast of only a 1.7 million barrel decline.

With demand taken into account, gasoline stockpiles are at their lowest since record keeping began in March 1991 and have dropped below levels just after the 2005 hurricanes along the US Gulf Coast to a 20-day supply.

Distillates, however, added 900,000 barrels to 129.9 million barrels, a slightly lower gain than had been expected.

Near the close of trade on the New York Mercantile Exchange, West Texas Intermediate crude for October delivery was up $1.78 to $73.51 per barrel, while in late trade on the Intercontinental Exchange in London Brent crude was $1.31 higher to $71.58 per barrel.

Nymex December gasoline was 4 cents higher to $1.90 per gallon, while heating oil had added 5 cents to $2.06 per gallon.

October natural gas was 18 cents lower to $5.58 per million British thermal units.