Oil rose to a fresh 26-month high on reports that crude stocks shrank and the economy accelerated in the US, the world s largest petroleum consumer.
Nymex February West Texas Intermediate crude rose 48 cents to $90.30 a barrel, trading above $90 for the third time this year. ICE February Brent rose 42 cents to $93.62.
The gains came as the US government reported commercial crude inventories fell by 5.3m barrels last week, largely along the Gulf of Mexico and Pacific coasts. US refineries were processing 6.4 per cent more crude than a year ago, while demand for petrol and distillate fuels showed annual growth.
Separately on Wednesday the government said US economic growth had quickened, with gross domestic product increasing at an annual rate of 2.6 per cent in the third quarter, slightly faster than the previous estimate.
I expect markets will come off in January, but the question remains open as to whether the acceleration in economic growth in the US and other parts of the OECD are going to tighten all commodity markets, including the oil market, into next year
US crude last traded consistently above $90 a barrel in October 2008, when prices were plummeting from a record $147 a barrel and volatility was at a peak amid the financial crisis.
Global oil demand has rebounded after two years of decline, with the International Energy Agency recently estimating the world increased consumption by 3.3m barrels a day in the third quarter or 3.8 per cent to 88.6m b/d.
Stocks still remain comfortable. The US s 340.7m barrels of crude inventories are well above average for this time of year.
