Oil jumps after demand data

20/02/2009

Crude oil prices rose dramatically during trading on the New York Mercantile Exchange (Nymex) yesterday (February 19th), after monthly demand data from the Energy Information Administration showed a surprise drop in crude inventories.

In the biggest single-day gains seen since December 31st, the bourse's headline contract rose 14 per cent to close at $39.48 a barrel, reversing straight losses seen so far this week.

Meanwhile, heating oil also enjoyed a gain, with 5.76 cents added to the cost of the March delivery Nymex contract by the end of the day.

However, gains in both crude and heating oil contracts have been cut back in this morning's trade.

"We'll have to see if the import decline is the start of a trend as the Organisation of the Petroleum Exporting Countries is really doing a lot to carry out output cuts," said Amanda Kurzendoerfer, commodity analyst at Summit Energy, speaking to Reuters yesterday.