Crude oil prices hit one-year high above $77

16 October 2009

Crude oil prices surged above $77 (£47.05) a barrel on Thursday (October 15th), buoyed by a US government report which showed an unexpected draw in gasoline inventories.

Data from the Energy Information Administration revealed that gasoline stocks fell by more than five million barrels during the week ending October 9th, despite analyst expectations for a build.

Distillate inventories, including home heating oil, also fell unexpectedly, while crude oil stockpiles increased by a modest 400,000 barrels against predictions of a 2.2 million-barrel rise.

The figures helped boost optimism that fuel demand could be starting to recover as the global economy begins to emerge from the recent recession, ensuring the recent oil price rally extended into a sixth day.

US crude for November delivery rose by $2.40, or 3.2 per cent, to settle at $77.58 a barrel by the end of the day, while London Brent crude gained $1.35 to close at $74.45.

Values have now climbed by more than six dollars over the past six days, with some analysts predicting that the upward trend will continue.

According to US bank Goldman Sachs, prices could rise as high as $85 a barrel before the year is out.

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