Crude oil prices surged above $65 on Wednesday as US claimed crude inventories dropped sharply
Crude oil prices surged above $65 on Wednesday as US claimed crude inventories dropped sharply last week because of Hurricane Katrina.
Light sweet crude for delivery in October, climbed $1.98 to close at $65.09 a barrel, posting its first positive finish this week.
Analysts had expected a drop of 2.0 million barrels.
Gasoline supplies rose by 1.9 million barrels to 192 million last week, contrary to expectations for a fall. Distillate stocksfell 1.1 million barrels to 133.3 million barrels.
Despite signs that high prices have dampened global demand for crude, the market remains concerned about supply levels, particularly since refineries are struggling to turn crude into heating fuel in time for the northern hemisphere winter.
Chevron Corp.'s Empire Terminal on the Mississippi River, which suffered severe flooding, an oil spill and a power outage, is nowhere near coming up with a recovery estimate, spokesman Mickey Driver said.
