Crude up: Fewer barrels in the bank means higher prices.
Crude surges as stocks fall
US crude futures surged to a six-month high above $62 a barrel today, rallying after government inventory data showed larger-than-forecast drawdowns in crude and gasoline supplies last week.
On the New York Mercantile Exchange, front-month July crude settled up $1.94, or 3.23%, at $62.04 a barrel, the highest settlement since 11 November at $62.41.
It traded from $59.86 to $62.14, the highest since $62.28 was struck, also on 11 November.
In post-settlement trading, the day's high rose to $62.26.
In London, July Brent crude ended up $1.67, or 2.83%, at $60.59 a barrel, trading from $58.76 to $60.80.
The data from the Energy Information Administration validated the industry group American Petroleum Institute's report yesterday that crude and gasoline supplies fell sharply last week.
Also supportive for crude, the US dollar extended losses, hitting its lowest level in nearly five months after minutes of the Federal Reserve's last policy meeting showed the Fed mulled increasing purchases of mortgage agency and government securities.
Gasoline futures turned negative near the close on profit-taking from a 15-cent run-up this week as front-month June RBOB contract hit fresh seven-month highs.
"The weak dollar is supporting crude late after FOMC minutes," Tom Bentz, senior analyst at BNP Paribas Commodity Futures said in a Reuters report.
"Gasoline has been the leader for the last week or so with all refinery issues and may have run its course and is attracting liquidation," Bentz said.