Oil rallies

Crude oil prices rose by more than $1 a barrel on Wednesday ahead of the latest US inventories data while gold regained the $1,000 level and base metals staged a broad advance as sentiment towards commodity markets found support from renewed dollar weakness.

Crude oil prices moved higher with Nymex November West Texas Intermediate up $1.14 at $67.85 a barrel while ICE November Brent gained $1.07 at $66.56 a barrel.

US inventory data due for release later in Wednesday’s session were expected to show that crude stocks rose 600,000 barrels last week as poor profit margins have weighed on demand from refineries. Activity by refineries was expected to fall 0.5 percentage points to 85.1 per cent, partly due to maintenance programmes.

Petrol stocks were seen rising 1m barrels last week while distillate stocks (including heating oil) were forecast to have increased 1m barrels.

Nymex October RBOB unleaded gasoline traded almost 4 cents higher at $1.6649 a gallon while Nymex October heating oil inched up just over ½ cent at $1.7070 a gallon.