Oil rose nearly 3 percent today to touch a six-month high over $62 a barrel as government data showed a steep drop in U.S. crude and gasoline inventories ahead of the summer driving season, according to Reuters. U.S. crude rose $1.75 to $61.85 a barrel by 1:57 p.m. EDT (1757 GMT) after hitting a six-month high of $62.14. London Brent traded up $1.52 to $60.44 a barrel. U.S. crude oil and gasoline stockpiles fell sharply last week, according to a U.S. Energy Information Administration report, with crude down 2.1 million barrels and gasoline off 4.3 million barrels. "Week over week, the report is very bullish," said Phil Flynn of Alaron trading in Chicago. "There are still questions over the economy, whether these prices can be sustained, which is why we will probably return to the stock market to see if there are any signs of economic help." Stock market strength has supported crude prices in recent months, helping lift them from lows below $34 a barrel on optimism any rebound in the economy could spur fuel demand. The Dow industrials briefly turned negative on Wednesday as bank stocks extended losses, while the S&P 500 and Nasdaq trimmed gains. Weak demand has sent crude prices off record highs over $147 a barrel struck last July. Fire struck gasoline-making units at two U.S. refineries this week, triggering a roughly 8 percent spike in U.S. gasoline futures on Tuesday as the United States gears up for the Memorial Day holiday on Monday, traditionally the start of summer driving season. Data from Japan showed gasoline inventories at their lowest level since September 2007 and kerosene stocks declining to a near three-year low in part due to strong sales.
