|
NEW YORK (CNNMoney.com) -
Oil prices zigzagged before ending higher Wednesday, after a government report showed larger-than-expected drop in stockpiles of crude.
Light, sweet crude for January delivery settled up 82 cents at $57.32 a barrel on the New York Mercantile Exchange, after falling as low as $55.72 during the session.
The Energy Information Administration said supplies of crude oil fell by 4.2 million barrels for the week ended Nov. 25. Analysts had predicted a fall of 500,000 barrels, according to Briefing.com.
"The big draw in crude has been tempered by the larger-than-expected increase in distillate stocks," Phil Flynn, an analyst at Alaron Trading in Chicago told Reuters. "The big question is, is it bearish enough to keep the market lower."
The report said supplies of distillates -- used for heating fuel -- rose by 3.4 million barrels while gasoline stocks fell by 500,000 barrels. Analysts polled by Briefing.com had predicted a 1 million barrel rise in distillates and a 1.2 million barrel build in gasoline supplies.
Distillates, which include diesel fuel and heating oil, have come into focus recently as the nation gears up for the winter season.
But warm weather in the Northeast, the country's largest consumer of heating oil, has taken pressure off both heating oil and crude prices for the last few days.
OPEC weighs in
OPEC ministers indicated this week that the group will keep the taps open when it meets next month. An Iranian official was quoted Wednesday as saying that OPEC may even tolerate a drop toward $40.
"Because crude prices are at a suitable level, OPEC is not expected to adopt a new position at its next meeting," Iran's head of OPEC affairs, Javad Yarjani, was quoted as saying by the Mehr news agency. "Even if the oil price comes down to $40, OPEC countries will not take serious action."
OPEC ministers meet in Kuwait on December 12.
--from staff and wire reports
-----------------
Will Santa drive? Gas gets cheaper, click here for more.
For more market news, click here.
|
