Oil surged 2.7 percent to near $73 a barrel today after data showed crude stocks in the United States fell more than expected last week, easing concerns about flagging demand, according to Reuters. Crude inventories declined by 3.7 million barrels in the week to Dec. 11, according to the U.S. Energy Information Administration, eclipsing analyst forecasts for a more modest draw of 1.8 million barrels. A 2.9-million-barrel draw in U.S. distillate stocks, which include heating oil and diesel, was almost five times bigger than the 600,000-barrel dip analysts expected, while gasoline stocks grew less than expected. The data showed that part of a U.S. fuel surplus is being worked off after demand was battered this year by the recession. "The best news here, in terms of market stabilization, is the big draw in distillates," said Brad Samples, analyst at Summit Energy in Louisville, Kentucky. Crude for January delivery rose for a second day, up $1.86 to $72.55 a barrel at 2:47 p.m. EST, after rising by up to $2.86 a barrel earlier. London Brent crude was up $1.50 at $73.55 a barrel. Oil rose for a second day after a nine-session rout in which prices plummeted 11.3 percent from levels above $78 a barrel on Dec. 1. Analysts attributed the fall to persistently low fuel demand and rising U.S. crude inventories.
