Crude Oil Closes at Record High, Topping $56 a Barrel
rude oil closed at a record high $56.46 a barrel Wednesday following a Department of Energy report showed U.S. gasoline inventories fell more than expected last week, news services reported.
The previous record closing price for light sweet crude oil futures on the New York Mercantile Exchange was $55.17, set last Oct. 22, while the high intraday record was $55.67, set Oct. 25.
DOE reported Wednesday that U.S. gasoline supplies dropped 2.9 million barrels to 221.4 million, the biggest one-week decline in supplies since September.
OPEC's agreement also gave the cartel's president power to consult with ministers to trigger an additional production increase during in the second quarter should prices fail to ease, Reuters reported.
But some OPEC ministers said they have run out of options in trying to rein in the price of crude oil, MSNBC reported.
OPEC nations already are pumping about 700,000 barrels a day more than promised in a failed bid to cut prices. More than half of its 11 members are operating at or close to full capacity, according to Bloomberg estimates.
The cartel's decision to increase production during the second quarter when demand declines signals a shift in strategy, Bloomberg reported.
OPEC could allow inventories to increase for use later in the year, creating a buffer against potential shortages, Bloomberg said.
