Crude Futures Shoot Higher

Updated from 2:31 p.m. EDT

Crude inventories plummeted and gasoline inventories unexpectedly rose last week, confounding analysts' estimates and snapping energy traders into buying mode.

According to the Energy Department, crude inventories fell by 6.6 million barrels last week, about three times the expected decline. Gasoline inventories, meanwhile, rose by 1.9 million barrels; they were expected to fall by 2 million. Inventories of distillate stocks fell by 1.1 million barrels.

Crude for October delivery, which was up about 80 cents prior the report, closed up $1.98 to $65.09 a barrel on Nymex. The contract remains down about 8% since Hurricane Katrina struck Aug. 29. ...