Current Oil Price above $94 with Unexpected Supply Drop

The current oil price moved above $94 per barrel following an unexpected fall in the crude supplies of the U.S.

The U.S. benchmark was 92 cents higher at a crude price per barrel of $94.20 on the NYMEX.

Oil inventories dropped 0.3 percent, or 1 million barrels, to 360.3 million barrels in the past week. Analysts anticipated a rise of 2.5 million barrels. The fall was mainly caused by a drop in imports. The growth of gasoline supplies was lower than expected due to reduced output from refineries.

Still, oil and gas supplies remain greater than average for this period of the year, with crude and gasoline supplies higher by almost 9 percent and above 3 percent, respectively, compared to their levels last year. Domestic daily crude production, of over 7 million barrels, is at its peak in 20 years.

The current gasoline price continues its fall. The national average gasoline price today is $3.29 per gallon, a rate that is lower by a cent compared to last week and 9 cents versus this period in the past year.

Moving forward, the upcoming report on the growth of China’s economy and the controversial talks in Washington over the borrowing limit of the U.S. will be closely watched by traders.

On London’s ICE Futures Exchange, Brent was 37 cents higher to $110 a barrel.

Elsewhere in the commodities markets, wholesale gasoline moves 2 cents up to $2.73 per gallon. Heating oil stayed unchanged at $3.01 per gallon. And natural gas dropped 7 cents to $3.38 per thousand cubic feet.