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UPDATE 9-Oil up on bullish U.S. gasoline draw, OPEC speculation

Published 2016-03-09, 11:18 a/m
© Reuters. UPDATE 9-Oil up on bullish U.S. gasoline draw, OPEC speculation
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(New throughout as market extends rally on data showing strong
U.S. gasoline draw)
By Barani Krishnan
NEW YORK, March 9 (Reuters) - Oil prices jumped 3 percent on
Wednesday after a huge draw in U.S. gasoline inventories last
week convinced the market that energy demand was improving
despite U.S. crude stockpiles hitting record highs for a fourth
week.
Crude prices also gained support on speculation that top oil
producers might agree soon to an output freeze.
Brent LCOc1 was up $1.15, or 2.9 percent, at $40.80 a
barrel by 11:10 a.m. EST (1610 GMT), after touching a session
high at $41.11.
U.S. crude CLc1 was up $1.27 at $37.77.
The U.S. Energy Information Administration said crude
stockpiles USOILC=ECI rose 3.9 million barrels to nearly 522
million barrels, as predicted by analysts in a Reuters poll.
But gasoline inventories USOILG=ECI fell 4.5 million
barrels, much more than the polled number of 1.4 million
barrels. EIA/S
"Gasoline is the star of the show today. Ongoing strength in
demand has yielded a large draw to gasoline inventories despite
a rebound in refinery runs," said Matt Smith, director of
commodity research at New York-headquarter energy data provider
ClipperData.
U.S. gasoline futures RBc1 hit November highs, rallying 4
percent.
Earlier in the session, oil rallied after an Iraqi oil
official told a state newspaper that producers in and outside
the Organization of the Petroleum Exporting Countries plan to
meet in Moscow on March 20 to discuss an output freeze. But
Russia's energy ministry said no date or place had been set for
the meeting. eporting by Amanda Cooper in LONDON and Henning
Gloystein in SINAGPORE; Editing by Alden Bentley and Marguerita
Choy)

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