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After US stockpiles unexpectedly dropped and traders closed losing trades, the Crude oil prices rose to a record high of $135 a barrel in New York. The Energy Department revealed that US crude inventories fell 5.32 million barrels to 320.4 million barrels last week, the biggest drop in last four months. The data from the New York Mercantile Exchange led the traders to buy crude to cover wrong way bets that the prices would decline, ultimately causing the $135 a barrel cost.
The oil prices have risen by 19 percent this month as analysts have increased their price forecasts because of supply constraints and demand growth. Arjun N Murti, Goldman, Sachs & Co, analyst had highlighted in a recent report that the possibility of $150 to $200 a barrel seems increasingly likely over the next six-24 months. The supply of gasoline sank to 755,000 barrels when analysts expected a gain. Ali-al-Naimi, Saudi Oil minister however told the press that the kingdom is planning a 300,000 a barrel a day output increase, to bring June production to 9.45 million barrels a day.
