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Bloomberg.com | December 22 2010 11:14 EST
Crude oil rose to the highest level in more than two years after government reports showed that U.S. supplies dropped and the country’s economy grew more than previously estimated in the third quarter.
Stockpiles fell 5.33 million barrels to 340.7 million, the lowest level since February, the Energy Department said. A 3.4 million-barrel decline was forecast, according to the median of 14 responses in a Bloomberg News survey. The Commerce Department said gross domestic product expanded 2.6 percent in the third quarter, up from a previous estimate of 2.5 percent.
“We’re seeing another dramatic drop in U.S. oil storage,” said Sean Brodrick, a natural resource analyst with Weiss Research in Jupiter, Florida. “We’re seeing an increase in economic activity, which will lead to further declines and higher prices.”
Crude oil for February delivery rose 69 cents, or 0.8 percent, to $90.51 a barrel at 10:46 a.m. on the New York Mercantile Exchange. Futures touched $90.80, the highest level since Oct. 8, 2008. Oil traded at $90.60 before the release of the report at 10:30 a.m. in Washington.
Brent crude oil for February settlement advanced 64 cents, or 0.7 percent, to $93.84 a barrel on the London-based ICE Futures Europe exchange. The contract touched $93.94, the most since Oct. 2, 2008.
To contact the reporter on this story: Mark Shenk in New York
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