Commodities: Oil rallies as inventories slide
Crude oil prices headed higher for the first time in a week following a sharper than expected fall in US oil inventories.
US crude inventories in the week to 14 December declined by 7.6m barrels to 296.9m barrels, according to the Energy Information Administration (EIA). Experts had been expecting a fall of less than 2m barrels.
It was the fifth week in a row in which inventories in the US have fallen, bringing the cumulative decline over that period to almost 20m barrels.
Crude oil for February delivery responded by rising $1.16 to $91.24 a barrel in New York, though this was off the intra-day high of $92.35.
On the metals markets, the strength of the US dollar diminished the appeal of gold in thin trading ahead of the Christnmas break.
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The spot price eased to $801.45 from $803.25 on Tuesday while the February futures contract dipped $2 to $805.40.
Platinum traded close to record highs as inventories fell to a level that would satisfy worldwide demand for only six or seven weeks, analysts said. January platinum rose $8.50 to close at $1,523.80 an ounce
Demand for platinum has been strong this year while there have been several interruptions to supply at some South African mines.
On Wednesday South African miner Aquarius Platinum said it expects to lose production of 500 PGM ounces per day due to a dispute between a contractor and its workers following strike action at the Marikana mine.
Aquarius said all 1,300 employees of Murray & Roberts, the underground contractor at the mine, have now been dismissed for participating in an unprotected industrial action and failing to turn up for work.
