Oil Prices Rise as Gas Stocks Decline

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Oil Prices Rise as Gas Stocks Decline

LONDON -- The price for crude oil across the world spiked yesterday on the U.S. government's weekly report that revealed an 11th consecutive drop in weekly gasoline inventory ahead of the peak summer driving season in the U.S., reported Reuters.

London Brent crude oil rose more than $1 to more than $68 per barrel, while U.S. crude prices were up 38 cents to $64.96.

"U.S. refineries are ramping up ... but the feeling is they are not going to keep up with demand," Mark Waggoner, president of Excel Futures in Huntington Beach, Calif., told Reuters.

Gasoline stocks were predicted to have fallen by 0.4 million barrels, according to a Reuters poll of industry analysts. However, government data showed gasoline stocks fell 2.8 million barrels and brought the decline in inventory to nearly 15 percent since February, the report stated.

"It's all about demand, demand, demand, and we haven't even got into the peak summer driving season yet," Waggoner added.