Oil prices jumped once again following a U.S. government report that confirmed fears about insufficient distillate stock supplies that will affect the global market ahead of the cold temperatures forecast in the US Northeast.

 

The Energy Information Administration (EIA) reported on Wednesday a rise of 1 million barrels in distillate stocks, including heating oil and diesel fuel, bringing the stockpiles to 1115.6 million barrels last week. Still, the supplies remain 14% below last year’s levels.

 

Phil Flynn, analyst at Alaron Trading in Chicago, remarked that "if you were worried about heating oil supplies, there is nothing in these numbers that will ease your fears. Heating oil stocks are continuing to be an issue."

U.S. light crude edged up 50 cents to $49.44 a barrel, which is about $6 off all-time high one month ago. London Brent jumped 37 cents to close at $44.82 a barrel.

 

Crude supplies dropped 1.2 million barrels to 293.2 million although the government reported an addition of 100,000 barrels.

 

Gasoline stocks rose 2.9 million barrels to reach 204.1 million barrels.

 

According to the US Energy Department, U.S. natural gas supplies are 49 billion cubic feet down for the week ended Nov. 19 and now are at 3.272 trillion cubic feet. This is a 118 billion cubic feet increase from last year.

January natural gas rose 22.9 cents to $7.85 per million British thermal units on the NYMEX.