The price of oil rose to a five-week high Wednesday amid unrest in eastern Ukraine, even as a report showed a large rise in U.S. crude oil supplies.
Benchmark U.S. crude oil for May delivery gained $1.04 to close at $103.60 on the New York Mercantile Exchange. The contract gained $2.12 on Tuesday. It last closed above $103 on March 4.
Brent crude, used to set prices for international oil varieties, rose 31 cents to $107.98 on the ICE Futures exchange in London.
Traders are uneasy about the potential for disruption of supplies due to instability in eastern Ukraine and more sanctions on Russia, a crucial supplier of oil and natural gas to Europe. Pro-Russian separatists have seized government buildings in several cities in Ukraine’s industrial east in the aftermath of Russia’s annexation of Crimea.
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Meanwhile, the announced reopening of four Libyan export terminals could turn out to be a drawn-out process, meaning it is unlikely to boost supplies imminently, analysts concluded.
OIl rose despite a report of surging U.S. crude supplies. The Energy Department’s Energy Information Administration reported that oil supplies rose by 4 million barrels last week. A survey of analysts by Platts, the energy information arm of McGraw-Hill Cos., had predicted a rise of 2.5 million barrels.
Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, wrote in a letter to clients that the one positive from the report was a decline of 5.2 million barrels in gasoline supplies. Still, he thinks the overall supply numbers signal lower oil prices.
“We have much difficulty building a case for advances beyond this level. US crude stocks continue to mount as a result of rapidly rising domestic production,” he wrote.
In other energy futures trading in New York:
— Wholesale gasoline added 3 cents to $3.01 a gallon.
— Natural gas rose 5 cents to $4.59 per 1,000 cubic feet.
— Heating oil gained 2 cents to $2.95 a gallon.
– AP
