Crude oil futures pared gains after the U.S. Energy Department said stockpiles fell less than expected last week.
Inventories of crude oil slipped 111,000 barrels to 384.6 million, the department said. Supplies were forecast to shrink 500,000 barrels. Supplies at Cushing, Oklahoma, the delivery point for New York-traded futures, increased 926,000 barrels to 47.8 million, a record.
Gasoline inventories climbed 3.35 million barrels to 203.5 million last week, the Energy Department said today. Stockpiles were forecast to gain 950,000 barrels, according to the median of 12 analyst estimates in a Bloomberg survey.
Distillate supplies, which include heating oil and diesel, increased 2.25 million barrels to 120 million. Stockpiles were estimated to slip 250,000 barrels from the prior week.
Crude oil for July delivery rose $1.45, or 1.7 percent, to $85.74 a barrel at 10:36 a.m. on the New York Mercantile Exchange. Oil traded at $86.03 a barrel before release of the inventory report at 10:30 a.m.
Oil increased as much as 2.3 percent before the inventory report as equities rose on speculation central bank policy makers will take steps to spur economic growth.
European Central Bank President Mario Draghi said officials stand ready to act as the euro region’s growth outlook worsens. Federal Reserve Bank of Atlanta President Dennis Lockhart said extending Operation Twist, the central bank’s stimulus program that lengthen maturities of debt on its balance sheet, is an “option on the table.”
The Fed’s policy-setting Federal Open Market Committee meets June 19 to 20 to consider whether more stimulus is warranted amid signs the U.S. economy is slowing.
Finance ministers and central bank governors from the world’s leading economies agreed to coordinate their response to the financial turmoil in Europe on a conference call yesterday. The talks preceded a summit of leaders from the Group of 20 nations June 18 and 19 in Los Cabos, Mexico.
The Standard & Poor’s 500 Index increased 1.4 percent.
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