Crude Inventories Gain; Gasoline, Distillates Continue Decline

rude oil inventories rose last week, but gasoline and distillate fuel stockpiles continued to decline, the Energy Department said Wednesday, and oil prices moved closer toward a record level.

The gasoline inventory drop of 3.9 million — more than the 1.9 million draw forecast by analysts — helped boost oil prices early Wednesday, as the price moved above $69 a barrel, a seven-month high, Bloomberg reported.

Crude oil reached a record $70.85 last Aug. 30 following Hurricane Katrina, reaching a record closing price of $69.81 on the New York Mercantile Exchange that day.

Distillates — which include heating oil and diesel — plunged by 4.2 million barrels, DOE said in its weekly report.

That was a much steeper drop than the 1.6 million-barrel decline forecast by analysts, Bloomberg said.