Wednesday, August 6, 2008

Oil Prices Swinging Back and Forth On Gasoline Stockpiles and Crude Oil Supply

A government report showing gasoline stockpiles are lower than last weeks' forecast, along with a surprise that the crude oil supply grew more than expected, has oil prices swinging back and forth today after the release of the report.

In early trading, September delivery of light, sweet crude gained 51 cents, to reach $119.68 a barrel on the Nymex. After the report prices have been going up and down.

According to the Energy Information Administration, stockpiles of gasoline dropped by 4.4 million barrels last week. That's much more than the 1.4 million decline analysts were looking for.

Crude supplies also surprised analysts in the positive, as they grew to 1.7 million barrels, in contrast to the 1.2 million barrel drop analysts thought would be coming.

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