Commodities News – Oil prices rise as inventories fall

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The US Energy Information Administration Crude announced crude oil inventories, measuring the change in the number of barrels of crude oil held in inventory by commercial firms during the past week that ended June 17.

Oil futures extended gains after the report showed a decline in inventories by 1.71 million barrels to 363.8 million. Expectations were for a decrease by 1.83 million barrels.

Crude oil for August delivery rose to $95.37 from $94.80 a barrel after the announcement at 14:30GMT.

Meanwhile news was released in Europe showing European industrial orders rose in April as increasing demand in Germany helped counter a slump in France and Italy, suggesting the Eurozone ’s economic expansion gathered some momentum into the second quarter. This news helped oil prices climb as well.

Orders in the euro area advanced 0.7 percent from March, when they fell 1.5 percent, the European Union’s statistics office in Luxembourg said today. Economists had forecast a gain of 1 percent. Orders jumped 8.6 percent from a year earlier.