Oil prices rise on supply news

| 6/29/2006

Oil prices continued to rise Thursday, June 29, following a report from the U.S. government that showed a drop in both oil and gasoline supplies.

Light, sweet crude hit a high of $73.55 per barrel in midday trading on the New York Mercantile Exchange before settling back down closer to $72 per barrel.

In its weekly report, the U.S. Department of Energy said crude oil inventories fell by 3.4 million barrels the week of June 19 to 343.7 million barrels. However, that is still 4 percent higher than levels for the same week in 2005.

Supplies of gasoline, however, were down by 1 million barrels to 212.4 million barrels, about 2 percent below last year’s levels.

Distillate stocks, which include diesel, were up by 1.8 million barrels for the week to 126.3 million barrels. That’s also up 13.1 million barrels from last year at this time.