EIA report sends oil prices above $81 per barrel

The price of crude oil hit a new year-long high Wednesday after the US dollar weakened again, and on a report from the US Energy Information Administration which showed that crude oil inventories rose last week, but not by as much as had been anticipated.

A weekly report from the EIA said that crude oil stockpiles were up by 1.3 million barrels last week, less than the 2.3 million barrels analysts had expected, while gasoline inventories fell more than the 2.3 million barrels expected and distillates in stock also declined.

Declines in gasoline stockpiles, especially, had less to do with gains in demand than it did with the fact that refiners are curtailing operations due to continuing weak demand and declines in profit margins.

December contracts for West Texas Intermediate crude were up $2.25 to $81.31 per barrel at around the close of floor trade on the New York Mercantile Exchange, while Brent crude had added $2.90 to $80.14 per barrel on the ICE Futures Europe exchange in London.

Nymex November gasoline futures were up 7 cents to $2.05 per gallon in afternoon trade, while December heating oil gained 6 cents to $2.13 per gallon but December natural gas was down 14 cents to $5.79 per million British thermal units.