Oil roars to record over $112 on U.S. inventory drop

NEW YORK (Reuters) – Oil surged to a record high over $112 a barrel on Wednesday after a government report showed a sharp drop in U.S. inventories ahead of the summer driving season.

U.S. crude settled up $2.37 at $110.87 a barrel after peaking at $112.21 and eclipsing the previous record of $111.80 hit March 17. London Brent settled $2.13 higher at $108.47 a barrel after hitting an all-time high of $109.50.

…”This is a perfect storm for the energy markets, with records hit all around,” said Phil Flynn, analyst at Alaron Trading in Chicago.

“But distillates are taking the center stage here because of tightness of supply of diesel and with a cold winter and the recent refinery fire in Finland.” he added.

Reuters