Oil Rises to Record $80.18 on Larger Than Expected Supply Drop

(Bloomberg) — Crude oil rose to a record $80.18 a barrel in New York after supplies dropped the most this year.

U.S. oil inventories fell a greater-than-expected 7.01 million barrels to 322.6 million last week, the Energy Department said today. Prices also rose after OPEC said yesterday it would increase production by 500,000 barrels a day, less than is needed to meet a seasonal rise in demand.


“We’ve shrugged off OPEC’s offer of 500,000 barrels,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. “There’s a tropical storm in the Gulf and inventories posted a huge decline.”

Crude oil for October delivery rose $1.68, or 2.2 percent, to settle at $79.91 a barrel at 2:54 p.m. on the New York Mercantile Exchange, a record close. Futures also touched the highest intraday price since trading began in 1983. The previous record of $78.77 was reached on Aug. 1.

Bloomberg