* Heating oil tops $2/gal for first time this year
* Surprise drop in gasoline, distillates stocks-EIA
* NOAA releases winter weather outlook
(Updates prices at settlement, detail on products)
NEW YORK, Oct 15 (Reuters) - Oil prices jumped more than 3
percent on Thursday to settle at their highest level in a year
after government data showed a steep, unexpected drop in U.S.
gasoline and distillate inventories.
U.S. crude <CLc1> for November delivery rose to settle up
$2.40 at $77.58 a barrel, its highest settlement since Oct. 14,
2008.
London Brent crude <LCOc1> gained $1.35 to settle at $74.45
a barrel.
Gasoline inventories fell by 5.2 million barrels in the
week to Oct. 9 against analyst expectations for an increase,
according to the U.S. Energy Information Administration, while
distillate stockpiles also fell unexpectedly. []
U.S. inventories of crude rose slightly.
On Thursday, gasoline futures ended at a new six-week high
and heating oil futures, which hit $2 a gallon for the first
time this year, finished at their highest level in 11 months.
Energy markets have been looking for signs of a rebound in
demand, which has been battered by the global economic crisis.
The EIA report showed demand for gasoline rising and total
products rose against year-ago levels last week, but analysts
said the main reason for the drop in product inventories was
the steep decrease in refinery runs.
"What stands out is the big draw in the gasoline," said
Gene McGillian, analyst for Tradition Energy, in Stamford,
Connecticut.
"But when you look at the numbers more closely, you see
that there was such a large decline in refinery utilization
rates. It makes you wonder how bullish this is for the crude
market (if) they are dropping refinery rates because there are
no good margins in cracking oil anymore," he added.
The National Oceanic and Atmospheric Administration on
Thursday in its winter forecast said that the Northeast United
States, the world's largest heating oil market, could
experience anything from below-average, to normal, to
above-average temperatures this winter. []
Elsewhere, NOAA said it expects temperatures to be above
normal across much of the western and central United States and
below average in the Southeast and Mid-Atlantic.
Energy shares got a boost on Thursday as the crude price
jumped, lifting equities markets.
Crude fell earlier in the session after data came out
showing Goldman Sachs' <GS.N> quarterly earnings nearly
quadrupled, but its shares fell on disappointment that so much
of the profit came from trading gains that might not be
sustainable. []
Oil traders have been watching equities markets as well as
broader economic data for signs of an end to the recession,
which could lift fuel demand.
U.S. Labor Department data showed initial claims for state
unemployment benefits in the United States fell unexpectedly by
10,000 to a seasonally adjusted 514,000 in the week ended Oct.
10, the fifth such decline in the last six weeks.
[]
Crude is now in positive territory on a year-on-year basis
for the first time since Oct. 10, 2008. The six straight days
of gains mark its longest winning streak since July.
For a graphic showing oil's year-on-year performance,
click:
http://graphics.thomsonreuters.com/109/CMD_OILPST1009.gif
For a graphic showing the oil price against world oil
consumption, click here:
http://graphics.thomsonreuters.com/109/CMD_OILDDM1009.gif
For a graphic showing the oil price and days supply, click
here: http://graphics.thomsonreuters.com/109/CMD_OILSP1009.gif
(Reporting by Edward McAllister, Matthew Robinson, Gene Ramos,
and Robert Gibbons in New York and Christopher Baldwin in
London; Editing by Christian Wiessner and Lisa Shumaker)
