Commodity Daily News

Crude Continues to Rise on Drop in Stockpiles

Light, sweet crude for February delivery settled up 41 cents, or 0.5%, at $79.28 a barrel on the New York Mercantile Exchange, the highest settlement since Nov. 19. Oil rose for a 7th day as U.S. Oil and fuel stockpiles fell to their lowest point since March as colder weather in the U.S. increased demand for heating fuels. Oil prices have risen 14% since Dec. 14, and are less than $2 below their high for the year.

Oil closed at a six-week high yesterday as Crude stockpiles fell by 1.5 million barrels in the week ended Dec. 25, the fourth decline in a row. Further boost to Oil prices came due to concerns that unrest in Iran may affect supplies from the second-largest producer in the Organization of Petroleum Exporting Countries (OPEC). Signs the U.S. economy is recovering from the recession have also boosted prices.