Bloomberg News

Oil Erases Drop as Europe Outlook Counters Rising Fuel Supplies

September 14, 2011

Sept. 15 (Bloomberg) -- Oil erased declines in New York as optimism that European leaders will keep Greece in the euro zone countered a report that showed weaker U.S. fuel demand.

Crude for October delivery traded at $88.92 a barrel, up 1 cent, in electronic trading on the New York Mercantile Exchange at 10:01 a.m. after earlier falling as much as 0.4 percent. The contract yesterday slid $1.30, or 1.4 percent, to $88.91. Prices are 17 percent higher the past year.

Brent oil for October was at $112.41, up 1 cent, on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $23.49 to U.S. futures, compared with a record $26.87 on Sept. 6.

U.S. gasoline supplies rose 1.94 million barrels last week, the biggest gain since June, according to an Energy Department report yesterday. Fuel use fell 3.8 percent and refineries operated at 87 percent of capacity, down 2 percentage points from the prior week.

French President Nicolas Sarkozy and German Chancellor Angela Merkel said they’re convinced Greece will remain in the euro area, according to a statement issued by Sarkozy yesterday after they spoke to Greek Prime Minister George Papandreou by telephone.

To contact the editor responsible for this story: Paul Gordon at pgordon6@bloomberg.net


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