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Wednesday, September 30, 2009

Crude Oil Up Despite Inventory

By Darryl R. Isherwood

FOXBusiness

Crude oil overcame early losses Wednesday, spiking to $67.40 on greater than expected gasoline demand.

The Energy Information Administration reported gasoline inventories fell by $1.6 million barrels as demand rose 3.8%. But gains were limited by crude inventories, which rose by 2.8 million barrels.

Analyst Phil Flynn of PFGBest said it was likely the weakness in the dollar propping up prices in the short term, but uncertainty in the market remained.

“I think you’ve got a tug of war on the demand side,” Flynn said. “Inventories were definitely bearish but not the knockout punch that maybe the market was looking for. Right now there also is a lot of uncertainty about Iran, the economy and interest rates.”

Oil stocks were generally lower along with the broader markets, with Exxon Mobil (XOM), Marathon Oil (MRO) and ConocoPhillips (COP) all lower as of midday.

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