Crude Rises
Dec 1st, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Friday, oil prices were sharply higher, with crude for January delivery closing at $54.44/barrel, up $3.67. January reformulated gasoline rose nearly 8 cents, to $1.2008/gallon.
Crude pushed up despite a strong build in stocks. In its weekly inventory report, the Energy Information Administration said supplies rose 7.3 million barrels in the week ended November 21, far above projections for a 400,000 barrel gain.
According to the EIA, gasoline supplies for the week rose by 1.9 million barrels, while distillate stocks fell by 200,000 barrels. Refineries were operating at 86.2% of capacity, up from 84.9% the previous week.
Traders, however, seemed to respond more to an interest rate cut in China than the inventory buildup.
However, the EIA report “increased the probability that OPEC will announce another cut in production and that they may do it at the Cairo meeting instead of waiting for the scheduled December meeting in Algeria,” said James Williams, of WTRG Economics.
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