Oil rises to five-week high on signs US fuel supplies fell

SINGAPORE: Crude oil rose to a five- week high, surpassing 76 dollar in New York, on speculation U.S. gasoline inventories fell as refiners reduced production.

A US government report today will probably show supplies of the motor fuel declined 1.3 million barrels last week as refinery operating rates fell to a two-month low, according to a survey of 15 analysts.

Crude oil for October delivery climbed 53 cents, or 0.7 per cent, to 76.26 dollar a barrel on the New York Mercantile Exchange. That was the highest intraday price since Aug. 3.

The contract rose 65 cents, or 0.9 per cent, to 75.73 dollar yesterday, the highest close since August 2. Prices gained 2 per cent the previous two sessions as Hurricane Felix neared the Gulf of Mexico before striking Nicaragua and Honduras and weakening to a tropical depression.

US gasoline stockpiles held 192.6 million barrels on August 24, the lowest since September 9, 2005, and the equivalent to 20 days of supply, the lowest since the records began in 1991.

Today's Energy Department report will probably show motor-fuel supplies fell as US refiners used 90 percent of their plant capacity, based on the analyst survey. Refineries operated at 90.3 percent of capacity a week earlier.

Oil reached a record 78.77 dollar a barrel on Aug. 1 before sliding to 68.63 dollar three weeks later as summer gasoline demand waned and falling equity and credit markets added to signs US economic growth may slow.