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Oil Gains 4.5% on Surprise Inventories Drop
08/10/2011
By Claudia Assis and Sarah Turner_ MarketWatch

  Crude-oil futures rose Wednesday, rebounding after steep losses in recent sessions dragged prices to their lowest in nearly a year, and as the government’s latest update on U.S. inventories showed a surprise decline. Crude for September delivery rose $3.59, or 4.5%, to settle at $82.89 a barrel. It was oil’s first gain in three days. The contract traded as high as $83.14 a barrel and as low as $79.73 a barrel, according to FactSet Research.

Oil futures dropped $2.01 on Tuesday to finish at $79.30 a barrel, the lowest price since late September. Oil has lost 9.3% so far this year. Monthly losses have reached 13%. “It’s a little bit of a dead-cat bounce, and some people looking for value” after the steep price declines, said Kyle Cooper, a managing director with IAF Advisors in Texas. Investors were also spurred to action after some concerns that members of the Organization of the Petroleum Exporting Countries might act to prop up prices, he said.


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