Oil climbs on fuel shortage fears

Firms shun OPEC offer for crude and buy 1/3 of available SPR stocks, underscoring refining problem.

LONDON (Reuters) – Oil prices extended gains above $65 a barrel Thursday, stoked by fears that the world’s biggest consumer — the United States — would shiver through the winter after a drop in fuel stockpiles.

U.S. light crude for October delivery rose 33 cents to $65.42 a barrel in early electronic trade, still about $1 lower than just before Hurricane Katrina hit. London Brent crude gained 13 cents to $63.50.
The limits of the global refining system were again brought into focus as oil companies spurned OPEC’s offer of additional high sulfur crude that is hard to process into light transport and heating fuels.

Reuters