Oil jumps above $70 a barrel

NEW YORK – Oil prices jumped above $70 a barrel Thursday over concerns about gasoline and heating oil supplies, giving additional lift to the prices of precious metals.

…Oil prices topped $70 a barrel for the first time since Sept. 1 as traders continued to react to an unexpected draw on inventories of gasoline and distillates such as heating oil. Gasoline demand typically surges in the summer driving months of July and August.


The Energy Information Administration reported Wednesday that U.S. gasoline stockpiles fell 700,000 barrels, while analysts polled by Dow Jones Newswires had forecast on average a build of 1.1 million barrels. Analysts also expected to see an increase in distillate stocks, which didn’t happen.

Speaking of gasoline, Barclays Capital analyst Kevin Norrish said in a report that “strong demand, falling imports and flat output is not a great combination, and we continue to look for gasoline prices to push up toward their second peak of the driving season.”

AP