MW: Oil jumps after EIA reports steep inventory drop
By Laura Mandaro
SAN FRANCISCO (MarketWatch) -- Crude-oil futures turned higher Wednesday after the Energy Information Administration showed a surprise drop in U.S. crude-oil inventories last week. The EIA said stockpiles fell 9.9 million barrels for the week ended Dec. 10. Analysts polled by Dow Jones Newswires were expecting a decline of 2.7 million barrels, and the American Petroleum Institute late Tuesday had also reported a more modest drop, of 1.4 million barrels. The EIA said gasoline inventories rose 800,000 barrels versus forecasts of an increase of 1.9 million barrels. And distillate inventories increased 1.1 million barrels, countering expectations for a 200,000 barrel-drop. A steeper drop in inventories suggests more demand. Oil for January delivery rose 61 cents to $88.90 a barrel.
