Crude Oil Falls on Speculation U.S. Supplies to Rebound on Delayed Cargoes

Oil rose above $80 a barrel after the government reported that U.S. crude and fuel supplies dropped as refineries idled units and imports declined. Oil inventories dropped 887,000 barrels to 336.8 million last week, the Energy Department said. Stockpiles were forecast to increase by 300,000 barrels, according a Bloomberg News survey of analysts. Inventories of gasoline and distillate fuel, a category that includes heating oil and diesel, also declined.

“There were draws in crude oil, gasoline and distillates, so the initial numbers looked very bullish,” said Rick Mueller, a director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. Crude oil for December delivery rose 43 cents, or 0.5 percent, to $79.57 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Futures have traded between $74.79 and $82 since Oct. 15. Prices are up 78 percent this year.....Read the entire article.