Inventory Down, Crude Up: Oil Alert

NEW YORK (TheStreet) -- A mix of data and news, including the Energy Department's weekly inventory figures, has oil investors guesstimating energy demand and sending futures higher.

According to the report, crude inventories plummeted by a more-than-forecast 5.9 million barrels to 337.5 million for the week ending September 4th. On Wednesday, the industry's American Petroleum Institute said that crude supplies dropped by 7.2 million barrels.

Analysts surveyed by Platts had expected oil inventories to fall by a much more slender 1.8 million barrels.

The federal report also said gasoline inventories grew by 2.1 million barrels last week, well off the 1.5 million barrel decline many expected.

In addition, federal data showed that distillate fuels jumped by 2 million barrels, while propane and propylene stocks grew by 1.6 million barrels.

After the release, the front-month contract for light, sweet crude was adding 24 cents at $71.55 on the New York Mercantile Exchange.

Before the report, crude prices were moving higher following a slew of signals. Earlier, the Organization of Petroleum Exporting Countries said it would maintain current production outputs.

The International Energy Agency also bettered its future oil demand estimates, saying that demand consumption would likely tick higher to 84.4 million barrels a day in 2009 and 85.7 million in 2010.