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Oil Extends Gain After Government Says Inventories Fell: Report

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Oil rose to a one-week high after the Energy Department reported that crude supplies unexpectedly decreased and as equities climbed on increasing optimism that U.S. economic growth is accelerating, Bloomberg reported.

Futures climbed as much as 1.4% after the department said crude stockpiles declined 2.05 million barrels to 373.1 million last week. A gain of 1.8 million was expected, according to the median estimate of analysts surveyed by Bloomberg. Stocks rose on better-than-expected economic reports, including a five- month high for the Institute for Supply Management’s factory index.

Crude oil for December delivery rose 81 cents, or 0.9%, to $87.05 a barrel on the New York Mercantile Exchange. Oil traded at $86.68 a barrel before release of the inventory report at 11 a.m. The report was a day later than usual because of delays caused by Hurricane Sandy.

Brent crude for December settlement dropped 36 cents, or 0.3%, to $108.34 a barrel on the London-based ICE Futures Europe exchange.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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