Oil rises as US supplies of oil, gasoline drop

Associated Press

NEW YORK (AP) — The price of oil rose Wednesday as a big drop in U.S. oil supplies offset concerns about a plunge in the stock market.

Benchmark oil for July delivery rose 43 cents to close at $93.74 a barrel on the New York Mercantile Exchange.

The price rose as high as $94.48 a barrel immediately after the Energy Department said U.S. crude oil inventories shrank by 6.3 million barrels in the week ended May 31, thanks to a sharp drop in imports. Analysts expected a drop of 1 million barrels. Gasoline supplies also fell, by 400,000 barrels, while analysts were looking for an increase.

Tighter supplies tend to push oil prices higher.

Oil gave back some gains in the afternoon as the stock market slumped after some subpar U.S. economic news. The broad Standard & Poor's 500 index dropped 22 points, or 1.4 percent, to 1,608. But the supply report gave oil traders enough cover to hold on to some gains.

"A tug of war appears to be playing out between some weakening equities and some bullish news on the fundamental oil front," wrote Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.

At the gas pump, the average price of a gallon stayed at $3.62 a gallon for a fifth straight day. That's 5 cents higher than at this time last year.

In other markets, Brent crude, a benchmark for many international oil varieties, fell 20 cents to finish at $103.04 a barrel on the ICE Futures exchange in London.

Also on the New York Mercantile Exchange:

— Wholesale gasoline was flat at $2.82 a gallon.

— Heating oil fell 1 cent to end at $2.86 per gallon.

— Natural gas was flat at $4.00 per 1,000 cubic feet.

___

Pablo Gorondi in Budapest, Pamela Sampson in Bangkok and Christopher S. Rugaber in Washington contributed to this report.

View Comments (115)

Recommended for You

  • US billionaire says WWII Japanese ship found in Philippines

    Microsoft co-founder Paul Allen said Wednesday he had found one of Japan's biggest and most famous battleships on a Philippine seabed, some 70 years after American forces sank it during World War II. Excited historians likened the discovery, if verified, to finding the Titanic, as they hailed the…

    AFP
  • Central Florida man killed by police serving search warrant

    By Barbara Liston ORLANDO, Fla. (Reuters) - A 26-year-old Central Florida man died after being shot in the face early on Wednesday morning by a sheriff’s deputy attempting to serve a search warrant in a narcotics investigation, authorities said. The Volusia County Sheriff’s Office reported in a…

    Reuters
  • 175-Pound Pit Bull Hulk Shatters Misconceptions About the Breed

    This dog just may be the world's largest Pit Bull. Only 18-months-old, Hulk weighs a hefty 175 pounds. He's also best friends with a 3-year-old boy.

    ABC News
  • Chad president tells Boko Haram leader to surrender or face death

    By Madjiasra Nako N'DJAMENA (Reuters) - President Idriss Deby of Chad said on Wednesday he knew the whereabouts of Abubakar Shekau, the leader of the Nigerian militant group Boko Haram, and called on him to surrender or risk being killed. Chad's army has waged a series of battles against Boko Haram…

    Reuters
  • Student Shot With BB Gun On Campus Shocked by University`s Reaction

    A student at Norfolk State University says she was shot with a BB gun and hit with a bottle of urine outside of a all-male dorm room on campus, but says the school offered little help to her or other students when she contacted them.

    Tribune
  • Australians on Indonesia death row arrive on execution island

    Two Australian drug smugglers were taken Wednesday to an Indonesian island where they will be executed despite frantic diplomatic efforts to save them, as Prime Minister Tony Abbott said Australia was "revolted" by their looming deaths. Andrew Chan and Myuran Sukumaran, the ringleaders of the…

    AFP
  • U.S. may review 1959 airplane crash that killed Buddy Holly

    (Reuters) - U.S. transportation safety investigators said on Wednesday they are reviewing a request to reopen a probe into the 1959 airplane crash that killed musicians Buddy Holly, Ritchie Valens, J.P. Richardson, better known as "The Big Bopper," and their pilot. The original investigation 56…

    Reuters
  • 'Thousands' of Russian troops in east Ukraine: US envoy

    The United States' senior envoy to Europe alleged Wednesday that Russia had deployed "thousands and thousands" of troops to neighboring Ukraine. Speaking to a congressional foreign affairs committee, Assistant Secretary of State Victoria Nuland also told US lawmakers that Russia was flooding…

    AFP
  • Couple plead not guilty to locking up kids 22 hours a day

    JEFFERSON, Ohio (AP) — A husband and wife accused of making three of their adopted children virtual prisoners inside their Ohio home pleaded not guilty Wednesday in a case that began after prosecutors say two girls crashed the family van while trying to make their escape.

    Associated Press
  • Pre-teen who called out Obama gets kicked off Facebook

    Pearson, under Facebook’s minimum age requirement of 13, was upset to find out that he was locked out of his account. After failing to get into his personal page, he created a new one, according to a Fox News blog post. “Due to the fact that approximately 7.5 million kids (under the age of 13) log…

    Christian Science Monitor55 mins ago
  • Judge Napolitano on 'scathing' federal report on Ferguson PD

    Insight from Fox News senior judicial analyst

    FOX News Videos
  • Killers sought in deaths of 300,000 chickens in South Carolina

    By Harriet McLeod CHARLESTON, S.C. (Reuters) - Revenge may be the motive for the killings in South Carolina of more than 300,000 commercial chickens worth about $1.7 million over the past two weeks, authorities said on Monday. Birds have been found dead of unnatural causes in 16 chicken houses at…

    Reuters
  • Former marine reported killed in Syria

    A former Royal Marine has become the first Briton to be killed while fighting with Kurdish forces battling Islamic State jihadists in Syria, leaving his family "devastated" Wednesday. Konstandinos Erik Scurfield, 25, died on Monday in a battle with IS militants, a source in the Kurdish People's…

    AFP
  • Americans Love K-Cups, but Their Creator Regrets Inventing Them

    Now it seems that John Sylvan, the inventor of the tiny containers, is firmly on Team #KillTheKCup too. “No matter what they say about recycling, those things will never be recyclable,” said Sylvan.

    Takepart.com
  • Georgia police officer killed in shootout

    By David Beasley ATLANTA (Reuters) - A Georgia police officer was killed in a shootout with a suspect in suburban Atlanta early on Wednesday, authorities said. Officers went to investigate reports of shots in a suburban neighborhood and came under fire about 1:30 a.m. EST, according to the Fulton…

    Reuters
  • Passengers use emergency slides after landing in Denver

    DENVER (AP) — Passengers on an American Airlines flight from Charlotte, North Carolina, were forced to slide off the plane on emergency chutes soon after landing in Denver on Wednesday.

    Associated Press
  • Father says no proof his son is 'Jihadi John'

    The father of "Jihadi John" said in an interview published Wednesday that there was no proof that his son was the Islamic State executioner, adding there were a number of "false rumours" circulating. "There is nothing that proves what is being circulated in the media, especially through video clips…

    AFP
  • Survivor testifies about 2 friends stabbed, bound, drowned

    PHILADELPHIA (AP) — A man who survived being beaten, bound, stabbed in the neck and kicked into the Schuylkill River took the stand in a hearing Tuesday and described the night his two friends lost their lives.

    Associated Press