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Oil prices over $115 on supply concerns

NEW YORK -- Crude futures rose past $115 Wednesday for the first time, propelled by concerns about how much gas will be available during the peak summer months, according to the Associated Press.

In its weekly inventory report, the Energy Department's Energy Information Administration said inventories of gas fell by 5.5 million barrels, much more than analysts surveyed by Dow Jones Newswires had expected.

The report also said crude inventories fell by 2.3 million barrels last week, compared to the gain analysts expected.

But the market was torn and traded sharply lower at times by data deeper in the report showing that the country's appetite for increasingly expensive gas is declining. Gas demand has fallen an average of 1 percent each of the last four weeks compared to the same period last year. Demand usually rises this time of year."

May gasoline futures rose to more than $2.90 a gallon.

Posted by Peter C. T. Elsworth  at 2:59 PM to Crude oil market | Permalink | Comments 2