Oil tops $71 after large drop in U.S. crude stocks

LONDON (Reuters)

The crude stock drawdown in the world’s largest energy consumer added to a sense weak demand is bottoming, with the U.S. Energy Information Administration (EIA) — the statistical arm of the DOE — raising its 2009 demand forecast for the first time since September.

U.S. light crude for July delivery rose $1.35 to $71.36 a barrel by 0855 GMT (4:55 a.m. EDT), after ending Tuesday at $70.01, the first settlement above $70 since early November.

London Brent crude gained $1.17 to $70.79.

“The crude stock draw and the EIA demand revision has bolstered hopes demand is starting to improve,” VTB Capital analyst Andrey Kryuchenkov said.

Reuters