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Oil prices surged nearly $5 to a record near $134 a barrel on Wednesday (May 21) after a U.S. government report showed a surprise drop in crude stockpiles, reinvigorating fears of a supply crunch. The gains bring oil up more than 33 percent so far this year in a rally that has raised alarm bells in consumer countries like the United States, already hard-hit by a housing slump and credit crisis. Weakness in the U.S. dollar encouraged Wednesday's buying spree by bolstering the purchasing power of buyers holding other currencies, dealers said. U.S. crude settled up $4.19 at $133.17 a barrel before extending its gains to $133.93 by 2025 GMT. London Brent rose $4.86 to end at $132.70. The U.S. Energy Information Administration reported that crude stockpiles in the world's biggest energy consumer fell 5.4 million barrels last week, countering expectations for a build. The fall in weekly inventories intensified concerns that supply problems will persist for...
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Fuel costs hurting airlines

Oil prices surged nearly $5 to a record near $134 a... (more)
Channel:MediaScrape Category:Business Views:19
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