Oil prices jumped more than 2 percent today, touching a one-year high after government data showed a steep, unexpected drop in U.S. gasoline and distillate inventories, according to Reuters. Gasoline inventories fell by 5.2 million barrels in the week to Oct. 9 against analyst expectations for a build, according to the U.S. Energy Information Administration, while distillate stockpiles also fell unexpectedly. U.S. inventories of crude rose slightly. U.S. crude for November delivery rose $1.53 to $76.71 a barrel by 1:12 p.m. EDT, after climbing as high as $77.39, its highest since Oct. 15, 2008. London Brent crude gained $1.04 to $74.14 a barrel. Energy markets have been looking for signs of a rebound in demand, which has been battered by the global economic crisis. The EIA report showed demand for gasoline rising and total products rose against year-ago levels last week, but analysts said the main reason for the draw in product inventories was the steep drop in refinery runs. "What stands out is the big draw in the gasoline," said Gene McGillian, analyst for Tradition Energy, in Stamford, Connecticut. "But when you look at the numbers more closely, you see that there was such a large decline in refinery utilization rates, it makes you wonder how bullish this is for the crude market (if) they are dropping refinery rates because there are no good margins in cracking oil anymore," he added. Energy shares got a boost as the crude price jumped, lifting equities markets.
