Oil hits 7-month peak as U.S. stockpiles wither
By Richard Valdmanis
NEW YORK (Reuters) - Oil prices surged to a seven-month high near $72 a barrel on Wednesday after a U.S. government report showed a slowdown in crude imports eating away at inventories in the world's top energy user.
U.S. crude for July delivery rose to a high of $71.79 a barrel before pulling back to trade up $1.04 at $71.05 by 1:20 p.m, EDT. London Brent rose 85 cents to $70.47 a barrel.
The gains came after the U.S. Energy Information Administration reported nationwide stockpiles fell by a larger-than-expected 4.4 million barrels last week as imports dropped by 676,000 barrels per day.
"The number that kind of stands out right away is the drop in crude oil imports," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. "If imports are going to drop, we're going to see some of the stockpiles erased."
The report also showed a decline in gasoline inventories as refiners slowed production and demand notched higher.