OIL PRICES ROSE WEDNESDAY AFTER THE U.S. GOVERNMENT REPORTED DECLINES IN CRUDE, GASOLINE, AND DISTILLATE INVENTORIES, WORSENING CONCERNS ABOUT A SUPPLY SHORTAGE FROM THE SHUTDOWN OF A MAJOR PIPELINE IN ALASKA. LIGHT SWEET CRUDE FOR SEPTEMBER DELIVERY ROSE 79 CENTS TO $77.10 A BARREL IN MORNING TRADING ON THE NEW YORK MERCANTILE EXCHANGE. GASOLINE FUTURES ROSE 0.62 CENT TO $2.233 A GALLON (3.8 LITERS), AND NATURAL-GAS FUTURES SOARED 49.2 CENTS TO $7.65 PER 1,000 CUBIC FEET (28 CUBIC METERS). U.S. SUPPLIES OF CRUDE OIL FELL 1.1 MILLION BARRELS TO 332.6 MILLION BARRELS LAST WEEK, THE ENERGY DEPARTMENT REPORTED WEDNESDAY. SUPPLIES ARE STILL MORE THAN 4 PERCENT ABOVE LEVELS LAST YEAR. GASOLINE INVENTORIES FELL 3.2 MILLION BARRELS TO 207.7 MILLION BARRELS, LESS THAN 1 PERCENT ABOVE LAST YEAR'S LEVELS AND IN THE LOWER HALF OF THE AVERAGE RANGE FOR THIS TIME OF YEAR. SUPPLIES OF DISTILLATES—INCLUDING DIESEL, HEATING OIL, AND JET FUEL—FELL 200,000 BARRELS TO 132.4 MILLION BARRELS, SLIGHTLY BELOW LAST YEAR'S LEVELS BUT STILL AT THE UPPER END OF THE AVERAGE RANGE FOR THIS TIME OF YEAR. THE REPORT ALSO INDICATED THAT U.S. DEMAND FOR GASOLINE AND DISTILLATES IS STILL HIGH. GASOLINE DEMAND AVERAGED 9.6 MILLION BARRELS A DAY, OR 1.8 PERCENT ABOVE LAST YEAR'S LEVELS. DISTILLATE DEMAND WAS ALMOST 6 PERCENT ABOVE LAST YEAR'S LEVELS. THE SHUTDOWN OF BP'S PRUDHOE BAY OIL FIELD AND CONTINUED FIGHTING BETWEEN ISRAEL AND HEZBOLLAH IN LEBANON HAVE PRESSURED PRICES THIS WEEK.
