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Oil rose to one-week high after the Energy Department reported that crude oil inventories unexpectedly fell, and as stocks gained amid increasing optimism that the U.S. economy is accelerating.
Futures rose after the Department said that oil stocks fell 2.05 million barrels to 373.1 million level last week. This value has surprised many economists, as they had expected growth of 1.8 million barrels. Shares rose amid better-than-expected economic reports, as well as after the manufacturing Institute for Supply Management index reached a five-month high in October.
Note also that oil production in the U.S. rose for the eighth week to 6.67 million barrels a day, which is the maximum in January 1995. At the same time, oil imports fell 10% to 7.92 million barrels a day.
Gasoline inventories rose by 935,000 barrels to 199.5 million level million, compared to expectations at around 850,000 barrels. Distillate stocks fell by 93,000 barrels to 117.9 million, versus the expected decline of 1.4 million barrels
Also, data released today showed that confidence among U.S. consumers rose in October to four-year high, and reached the level of 72.2. Recall that in September the figure was 68.4 points.
Crude oil futures also rose after China said that the purchasing managers' index rose to 50.2 in October from 49.8 in September, while showing the first increase in four months.
December futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 87.06 dollars a barrel on the New York Mercantile Exchange.
December futures price for North Sea petroleum mix of mark Brent fell 19 cents to 108.27 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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