Oil nears $62 on US stock drop

Oil rose toward $62 today after soaring nearly 2 per cent following a surprise draw in US crude stocks and a deep fall in gasoline…

Oil rose toward $62 today after soaring nearly 2 per cent following a surprise draw in US crude stocks and a deep fall in gasoline stocks.

US crude was up 9 cents a barrel at $61.91 earlier this morning, extending yesterday's $1.13 gain. Prices stood near a two-month high of $62.49 seen a week ago before a bout of equity-induced weakness.

London Brent crude was up 15 cents at $62.65.

US crude stocks plunged 4.8 million barrels last week, against analysts forecast for a rise, after fog along the key Gulf Coast refining and transit hub disrupted imports.

READ MORE

A fall of 3.8 million barrels in gasoline stocks was also much deeper than analysts had expected, stoking concerns about summer supply amid a series of refinery glitches, while distillate stocks declined 1.3 million barrels, data showed.

Heating fuel stocks may fall further as a cold snap hits the US Northeast just two weeks before the end of winter.

Oil markets have held up well, however, amid two weeks of stock market anxiety sparked by a drop in China's main equities index, aided by fears of a US economic slowdown and exacerbated by a rally in the Japanese yen, the funding currency for many speculative bets.