Oil Jumps After US Stockpile Draw; Gasoline At 7-Month High


NEW YORK, June 10 (Reuters) - Oil rallied for a second straight day on Wednesday, with U.S. crude nearing a one-month high and gasoline hitting its highest price since November, as a big U.S. stocks drawdown boosted the outlook for summer fuel demand.

"There's no mistaking it: There's pretty good demand for both crude oil and gasoline in the United States now and it could stay this way the next couple of months," said John Kilduff, partner at New York energy hedge fund Again Capital.

The U.S. Energy Information Administration (EIA) reported that crude oil inventories shrank by 6.8 million barrels last week, four times more than forecast by analysts in a Reuters poll.

The largest stockpile drop since last July came as refining demand for crude rose amid higher gasoline consumption. Inventories at the Cushing, Oklahoma delivery point for U.S. crude also fell although stockpiles of distillates, which include diesel and heating oil, showed a build.

"The distillate category was a bit of a drag on the inventory and demand front, but not enough to diminish the overall strength of the report," Kilduff observed.

Oil futures, which rose 3 percent on Tuesday in anticipation of the draws, extended gains on the data. Later, profit-taking pulled prices off session highs.

U.S. crude settled up $1.29, or 2.1 percent, at $61.43 barrel, after hitting a May 13 high of $61.82.


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Brent Crude Oil : $50.47/BBL 0.98%
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