News and Articles

Oil and Gold Prices Rise

Published March 26, 2008

Oil prices jumped $4 a barrel on Wednesday after a United States government report showed larger-than-expected drops in fuel stocks in the world’s top consumer.

Gasoline inventories fell by 3.3 million barrels, the Energy Information Administration said, more than the 800,000-barrel decline expected. Distillates dropped 2.2 million barrels, also more than forecast.

“Today’s numbers are a nice bullish surprise and come on a day when the other commodities are picking up as well,” said Mike Zarembski, analyst at optionsXpress in Chicago. “On gasoline, that’s not exactly what we wanted to see heading into the driving season.”

Crude oil for May delivery rose $4.15, or 4.1 percent, to $105.37 a barrel at about noon Wednesday.

Crude oil inventories also bucked expectations. Stocks were expected to rise by 1.7 million barrels last week, but were unchanged.

Earlier on Wednesday, oil rose as a weakening American dollar prompted some investors to shift money back into commodities.

Gold, which like oil is used by investors as a hedge against inflation, rose as a result. Gold futures for April delivery increased $12.50, to $947.50 an ounce late Wednesday morning in New York trading.