Reduction of US oil reserves causes price rise

The rise in world oil prices is due to reports of the US Department for Resources last week, stating a reduction of oil reserves, RIA Novosti reports.

February futures for Light Sweet Crude Oil increased by $0.18 (0.18%) to $98.85 per barrel by 08.46. The price of February futures for Brent increased by $0.02 (0.02%) to $107.73 per barrel.

US commercial reserves of oil (excluding strategic reserves) of the week that ended on December 16 dropped by 10.5 million barrels (3.27%) to 323.5 million barrels. Analysts questioned by Bloomberg expected a drop by 2 million barrels.

Jonathan Baratt, Director of the Commodity Broking Services, said that it is a major reduction of reserves. The market expects a growth.