Oil Rockets to $135 on Surprise Supply Decline

Unexpected decline in US oil and gasoline supplies sparks surge
By Jim O'Neill,  Newser Staff
Posted May 22, 2008 6:11 AM CDT
Oil Rockets to $135 on Surprise Supply Decline
The price of oil has continued to climb.   (AP Photo)

A surprise 5.32 million barrel decline in US crude oil stockpiles prompted oil prices to surge past a record $135 a barrel in after-hours New York trading this morning, extending oil's runup to 19% this month, reports Bloomberg. The Energy Department also said yesterday that gasoline stockpiles had declined some 755,000 barrels, while analysts had expected an increase in reserves.

“There's agreement that $200 is possible and that's getting more people into the market,” said an analyst. “We have very little supply cushion going forward and that's playing into the minds of investors.'' (More oil prices stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X